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BMW announces plans to build fully electric Mini at UK plant

BMW will continue to build Minis in the UK (Rex)
BMW will continue to build Minis in the UK (Rex)

BMW has confirmed plans to build a fully electric version of the Mini at its Cowley plant near Oxford.

The carmaker said the three-door model would go into production in the UK in 2019, although the electric motor will be built in Germany, the company confirmed.

The news is particularly significant as the manufacturer had previously hinted that it may move production overseas because of the uncertainty caused by Brexit.

Business secretary Greg Clark welcomed the “landmark decision” and “vote of confidence” in the UK.

He added that it “recognises the strength of the excellent workforce, our record of innovation and the productive relationship between the automotive sector and the government”.

He said the government plans to make Britain “the go-to place in the world for the next generation of vehicles”.

BMW said it had “neither sought nor received” any reassurances from the UK on trading arrangements for after Britain exits the European Union.

BMW was vocally against Brexit, but looks to remain in the UK
BMW was vocally against Brexit, but looks to remain in the UK

The government has faced questions about assurance given to fellow carmaker Nissan before it announced that it would be building new models in the UK.

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BMW has owned the Mini brand since 1994, and builds about 360,000 of the cars each year — 60 per cent in its Oxford plant.

The company said it plans for electric vehicles to account for between 15-25 per cent of its sales by 2025.

There are more 90,000 fully electric and hybrid cars now on UK roads, with carmakers planning to build more.

Volvo recently announced that it will only launch electric or hybrid cars from 2019.

In the run up to the EU Referendum, BMW, which employs 18,000 people in the UK, vocally opposed Brexit.

“More than half of Minis built and virtually all the engines and components made in the UK are exported to the EU, with over 150,000 new cars and many hundreds of thousands of parts imported from Europe each year,” the company said in a letter to its staff.

“Tariff barriers would mean higher costs and higher prices and we cannot assume that the UK would be granted free trade with Europe from outside the EU.”