BMW backs Britain with e-Mini production

BMW has given Britain's car industry a "vote of confidence" by deciding to build its all-electric version Mini at its Crowley plant in Oxford, says the Daily Telegraph.

The site, the "iconic home" of the popular car, currently accounts for around 60 per cent of global production of the vehicle.

"But BMW has built up an alternative manufacturing base in the Netherlands amid concerns about Britain's suitability as an export hub after Brexit," says the BBC, leading to speculation that the site or a new plant in Germany could get the business.

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A major industrial dispute with British workers over the closure of two final salary pension schemes added to these fears, although this has now been resolved.

Industry experts said the decision was not a surprise and warned it offered no hint as to where future production for new models may take place.

"This is not a brand new car, redesigned from the ground up. It's a Mini, a 3-door hatchback, which will in many ways be identical to the cars already being built at the Cowley plant," writes BBC business correspondent Theo Leggett.

"There is no need for a new factory or production line, meaning the size of the investment will be relatively small by auto-industry standards - in 'the tens of millions', BMW says."

In fact, "the electric bit - the drivetrain, which includes the motor, gearbox and battery pack - will be assembled in Germany" and shipped into the UK.

David Bailey, professor of industry at Aston University, said: "The big decisions will be about future models [which would have redesigned bodies], both at Mini and at companies like Vauxhall when they announce their new models in the next couple of years."

Ian Robertson, head of sales and marketing at BMW, has met Business Secretary Greg Clark four times this year, but the firm insists it has "neither sought nor received" any assurances on post-Brexit trading arrangements.

In contrast, Nissan boss Carlos Ghosn cited the "support and assurances of the UK government" last year for its decision to build the the next-generation Qashqai and X-Trail models at its plant in Sunderland.

However, both sides insisted this did not include a "sweetheart" deal to compensate for future tariffs.