A fully electric version of the Mini is to be built in the UK, giving a huge boost to the British car industry and relief to the government as it pursues an exit from the European Union.

The move ends worries the new model could be made overseas after a warning in February from German owner BMW that it may look outside the UK because of the uncertainties caused by Brexit.

BMW now says the electric drivetrain will be built at its plants in Bavaria before being integrated into the car at Cowley, near Oxford.

The car will be a variant of its three-door hatch model and will go into production in 2019.

The business secretary, Greg Clark, welcomed the news, saying: “[This is] a landmark decision that is a vote of confidence in the workforce and in the determination of our industrial strategy to make Britain the go-to place in the world for the next generation of vehicles.”

The news comes a day after Clark launched a £246m fund to invest in battery technology in Britain, a key factor in the progress of electric vehicles.

Frank Bachmann, managing director at Cowley, told the Oxford Mail: “This is good news for everybody on the team at Plant Oxford and this addition to the model line-up marks an important next step in the evolution of Mini.



“As the main manufacturer of the Mini three-door, with production expertise built up over many years, it makes sense for us to build this all-electric model.

“I know that everyone on the plant is looking forward to the project that lies ahead.”

BMW, along with other manufacturers, had strongly opposed a leave vote before the referendum in June 2016. In February this year, the company said: “The BMW group has always made clear that we believe integration of the UK into the EU single market, maintaining free movement of goods, services, capital and talent, would be best for business. What’s important for us is that the UK’s negotiations with the EU result in uncomplicated, tariff-free access to the EU single market in future.”

The motor industry has warned that Brexit could be seriously damaging for manufacturing in Britain, should any tariffs be introduced. Many car components cross borders between suppliers and plants, sometimes more than once, before final assembly.

The plant’s local MP, Liberal Democrat Layla Moran, said she had urged the government to heed the car industry and seek an interim deal that keeps the UK in Europe’s customs union and single market, adding: “I hope this vote of confidence by BMW is a sign that ministers have listened.”

Unite, which represents the 4,500 workers at the Cowley plant, said the decision on the Mini was “down to the tremendous skills and efficiency of BMW’s UK workers and our members”.



Len McCluskey, the union’s general secretary, said: “This announcement is a huge and totally deserved boost to a world class workforce that has endured a tough few months.”

McCluskey urged the government to invest faster in the developing electric car industry, particularly in charging infrastructure.



“We urge the government to waste no more time – in bringing forward an industrial strategy of the scale and scope to ensure UK manufacturing stays in the fast lane,” he added.