'Cheaper' Mini on its way
German car giant BMW is planning to replace its successful British-built Mini with a new, cheaper-to-make model.
The company, which makes the Mini at Cowley near Oxford, has drawn up plans for a version of the car with a less ambitious design, according to a report.
The Munich-based car maker has decided the high specification of the Mini and its relatively low market price has limited its profitability, the report in the Sunday Times said.
The new model, which will not be available for at least three to four years, will have cheaper components and will be offered with a wider range of body types including a five-door estate.
BMW’s Mini, based on Austin’s original classic, has had significant success since the company launched it just under three years ago.
The company sold 176,000 of the cars last year – 22% up on 2002 – and expects to sell about 180,000 this year. The Mini is sold in 73 countries, with prices ranging from just over £10,000 (€14,982) to more than £14,000 (€20,974).
BMW declined to give profit figures for the Mini, but a spokeswoman said the company expected the current range to make a “positive contribution to the group’s bottom line”.
She confirmed that the group plans to build a new range, which is likely to be available in different styles.
There may be a limited amount of extra investment at Cowley, which employs 4,500, to handle extra volumes, she said.
But the spokeswoman said it was too early to give further details on the new car, adding: “We’re still some years away from going into production.”
