Last month, Donald Trump got re-elected as the 47th President of the United States of America. Upon his reinstatement, he signed a couple of mobility-focused executive actions. Most notably, he ended the Biden-era Electric Vehicle (EV) targets which entailed that 50 per cent of all new vehicles sold in the United States would be electric by 2030. This would further shorten the lifespan of Internal Combustion Engine (ICE) powered vehicles.
What is Going on at Mini?
BMW Group, Mini’s owners, announced plans in 2023 to begin manufacturing electric Minis at the company’s Oxford assembly plant, northwest of London, in 2026. But this is likely not happening anymore. In an interview with Reuters, a spokesman at Mini stated, ‘Given the multiple uncertainties facing the automotive industry, the BMW Group is currently reviewing the timing for reintroducing battery-electric Mini production in Oxford.’ These ‘uncertainties’ mostly stem from the aforementioned Trump executive actions, some of which would go in Mini’s favour and others against them. For example, Donald Trump’s tariff threats, which, if imposed, would levy a 25 per cent tax on all vehicles imported to the US. This would mean less profit for Mini when importing cars to the US.
Why are they Holding off Electric Car Production?
Car companies like Mini have probably halted their electric vehicle production with hopes that the Trump executive actions go through. This would inadvertently afford them a longer time for EV development. More so, with a longer development time, resources and money can be spread across a wider period. BMW previously revealed it planned to invest 757 million USD (114 billion naira) for the purpose of turning Mini into an all-electric brand. It even considered accepting a grant from the federal government in 2023 to help achieve its set goal. However, Mini is no longer accepting the grant. They told Reuters, ‘As part of this discussion, we agreed not to take the previously announced grant, but we remain in close dialogue about our future plans.’
Mini is still working to make the plant future-ready for EV production, but in the meantime they could even look for possible mergers with companies that have hacked the EV market. They could save money through shared resources. From the looks of things, more companies may join the Mini movement by halting production of EVs. For now, we watch and see what the automotive world has in store for us.
