Mini sures up its new energy value

LATE last year BMW Group announced that it will invest £600 million ($A1.15b) in its UK plants to ensure the Mini brand is ready for its move toward becoming all electric by the end of this decade.

 

The investment has to date helped get the Cooper 3-Door and Aceman into production (the same two models also produced in China from where global exports have already begun) as well as the Cooper 5-Door and Countryman.

 

BMW Group’s contribution is one of the largest investments made by the German marque since it purchased the brand from Rover in 1994, and according to Mini Australia and New Zealand general manager Alexander Brockoff, will help to ensure the brand has a strong foothold within the new energy vehicle segment globally.

 

“The Mini brand is valued at $US5.6 billion ($A8.4b), so it is obviously something we have to take care of,” he explained.

 

“The new Mini range represents the biggest investment into the brand since our (BMW’s) take over in the late 1990s, and it comes at a time the automotive industry faces what is probably the biggest transformation we have seen since the automobile was introduced.

 

“And when we refer to change, there are really two trends here: electrification is one of them, digitisation is the other. With our investment in the brand, these were the two key areas that we looked at.”

 

Mr Brockhoff explained that the newest Mini models will serve to retain existing customers while also attracting new ones, the availability of petrol and electric models helping to drive the brand’s future plans in regions where tightening emissions regulations are of obvious importance.

 

“We are not only wanting to retain our existing customers, we also want to find and attract new customers with our hatch (Cooper), crossover (Aceman), and SAV (Countryman) models,” he continued.

 

“The range of models, as well as powertrain choice, is really our basis for growth … electrification, digitisation, and a smaller environmental footprint are fundamental to our portfolio in a range of markets, including Australia and New Zealand.

 

“The clearly differentiated sizes – and the choice of petrol and electric drivelines – will help to reinforce our growth.”

 

Despite their obvious differences, Mr Brockhoff said there would be “no impact” on the hip pocket of Mini buyers choosing petrol or electric drivelines.

 

Australian customers financing through BMW Finance offered not only a lower interest rate than with many external lenders, but also the reassurance of guaranteed future value on both driveline alternatives.

 

“The captive finance from the BMW Group plays a crucial role to the success of the (Mini) brand in Australia,” he continued.

 

“We offer a 4.99 per cent interest rate on the range for our customers at the moment … and also the peace of mind of guaranteed future values on our products (when purchased) with our finance products – and we don’t only do that for petrol cars, we also do that for electric cars.

 

“So, for customers who are worrying about the future value of an electric car, we wish to say that they don’t have to worry, because we guarantee that (future value) with our finance products.

 

“There are also tax benefits out there for our battery electric vehicles under the luxury car tax threshold, and we have specific financial products that can cater to that as well,” he added.

 

The news comes at the same time Mini faces tariff threats from the European Union over electric models produced in China.

 

According to a Reuters report, BMW’s Chinese made all-electric Mini range will be hit with the highest EV tariff of 38.1 per cent under the EU’s provisional plans.

 

The Mini is produced in cooperation with Great Wall Motors while the electric iX3 is made in China by BMW Brilliance for export back to Europe (and to other markets).

 

Reuters suggests a 38.1 per cent price hike on Chinese made Mini models entering Europe “could dent sales at a time when the carmaker is counting on every projected all-electric sale to help meet tightening carbon emission targets”.

 

The investigation into European-Chinese vehicle trade will continue into late October, leaving time for the European Commission and Beijing to soften the blow for affected OEMs.