BMW has confirmed it is delaying the reintroduction of electric vehicle production at its Oxford Mini plant.
The vehicle manufacturer said “multiple uncertainties facing the automotive industry” had led to its decision to pause work on the £600m upgrade of its plant in Cowley.
It said it had decided not to accept a related £60m grant from the government but remained in “close dialogue”.
The UK automotive industry has been in a long-running debate with the government over its targets for electric vehicle production.
Car makers have argued that the number of electric vehicles they are expected to sell in this and coming years is too high.
Earlier this year, the government ran a fast-track consultation on changes to this policy, known as the zero emission vehicle (ZEV) mandate.
Last November, Stellantis cited the mandate as one of the reasons it decided to close its van factory in Luton.
A statement from Mini owner BMW said: “Plant Oxford is at the heart of Mini production, manufacturing and exporting a range of models, which are sought after in the UK and around the world.
“However,…