BMW will reveal plans to build its next-generation electric Mini in Oxford after securing a government funding package.
The German-based manufacturer’s multi-million investment in transforming its existing factory will secure 4,000 high-quality jobs, according to ministers.
Government sources declined to reveal the amount of tax support offered to BMW but did not dispute the previously reported figure of £75 million.
Rishi Sunak said the government was protecting jobs and boosting the economy “by supporting our automotive industry”.
“BMW’s investment is another shining example of how Britain is the best place to build the cars of the future,” the Prime Minister added.
Business Secretary Kemi Badenoch was asked how much taxpayer money would be spent to secure BMW’s investment.
She told BBC Radio 4’s Today programme: “I can only tell you what we have put into the Automotive Transformation Fund and that is money that is going to lots of different companies in the industry, not just one .” We invested £350 million in 2021.
“We as a government have to make some investments ourselves, that’s standard and we compete with countries around the world as well as the EU and win. “We’re not doing anything extraordinary.”
Production of two new electric Mini models will begin in Oxford in 2026.
BNW is expected to invest a total of £600 million in the site and a further mini-factory in Swindon to produce vehicle body parts.
In Oxford, this involves making changes to production lines and creating a new area for battery installation.
The new electric models Mini Cooper and Mini Aceman are assembled at the factory alongside conventionally powered cars.
Mini production in Oxford will be entirely electric from 2030.
This is seen as crucial to securing the future as the brand is expected to be fully electric from this point onwards.
More than 4,000 people work in the factories in Oxford and Swindon.
The announcement is the latest boost for the UK automotive industry. Last month’s figures suggest that production rose by almost a third last month compared to a year ago.
The Society of Motor Manufacturers and Traders said it showed automakers were continuing to recover from recent difficulties, including the global chip shortage.
Last week, electric vehicle production also began at the Stellantis factory in Ellesmere Port following a £100 million investment after doubts emerged over post-Brexit trade arrangements.
Vans such as the Vauxhall Combo Electric, the Opel Combo Electric, the Peugeot e-Partner, the Citroen e-Berlingo and the Fiat E-Doblo are manufactured at the Cheshire site.
Chancellor Jeremy Hunt said BMW’s investment was a “huge vote of confidence in this country as a world leader in electric vehicles”.