BMW is to build its next-generation electric Mini in Oxford after securing millions of pounds in taxpayer support from the government.
The German-headquartered car giant is set to announce later on Monday details of its multi-million pound investment, which ministers say will secure around 4,000 jobs.
It comes after Sky News revealed earlier this year that BMW was preparing to invest more than £500m in its existing plant in the city, supported by £75m in government funding.
Whitehall sources declined to give details on the level of taxpayer support being offered, but did not dispute Sky’s £75m figure.
The government said BMW’s impending announcement means total investment into the country’s automotive sector has now topped £6bn over recent years.
Prime Minister Rishi Sunak said: “BMW’s investment is another shining example of how the UK is the best place to build cars of the future.”
He added: “By backing our car manufacturing industry, we are securing thousands of jobs and growing our economy right across the country.”
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It is the latest boost for the British car industry, after figures last month suggested production had increased by almost a third compared to a year ago.
The Society of Motor Manufacturers and Traders said it showed the industry was recovering from COVID-related disruption, with much of the growth driven by production of high-tech hybrid electric, plug-in hybrid and battery electric vehicles.
Last week, electric vehicle production also began at the Stellantis factory in Ellesmere Port after a £100m investment.
Vans such as the Vauxhall Combo Electric, Opel Combo Electric, Peugeot e-Partner, Citroen e-Berlingo and Fiat E-Doblo will be made at the site in Cheshire.