BMW has announced a £250 million investment in its UK factories in order to increase Mini production over the next three years. The cash injection will be used to boost production at the company’s plants in Oxford, Birmingham and Swindon.
The news follows a £500 million investment last June and BMW says the announcement demonstrates its commitment to manufacturing in the UK. Speaking on behalf of the company Graham Biggs said;
“This investment is about securing jobs for the future. We tend to build cars where we sell them, so the UK is a very important market for us – about the fourth largest in the world – so building Minis, Rolls-Royces and engines here makes a great deal of sense.”
The automotive industry remains a major UK employer and it is estimated that every assembly job supports 7.5 others elsewhere in the sector. These jobs range from those in component manufacture to others in commercial properties such as garages, workshops and showrooms. In total the number of people employed in the sector exceeds 700,000 nationwide.
This January BMW launched the Mini Roadster convertible, a two-seater version of the Mini Coupe, which is assembled at its Cowley industrial commercial property in Oxford. Besides investing further in this plant, there will also be expansions to its engine plant in Birmingham and its body pressing plant in Swindon.
The company also announced that it will be looking for opportunities to launch “satellite production” of the Mini overseas due to capacity problems at Cowley. “We need to look for a flexible partner to help us build the cars and we’re considering a contract with a Dutch contract manufacturer,” Mr Biggs told the BBC.
Currently BMW is in discussions with a Dutch subsidiary of Mitsubishi with a view to utilising spare capacity at its industrial commercial property in Born in the Netherlands. However the company insists that Cowley will remain “the home and heart” of the Mini and will provide support in establishing the overseas venture.
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