Mini Eyes North American Production of Electric Crossover to Access US Subsidies

Mini may soon be building electric cars in North America, specifically in BMW’s Mexican plant in San Luis Potosi, according to a recent media report. While the carmaker has not confirmed the news, the electric crossover from Mini could go into production in the second half of the decade, joining the internal combustion sedans of the 2 and 3 series that are currently produced there.

BMW announced plans in February to invest €800 million in its Mexican plant for the integration of all-electric New Class models, but has not named any specific models until now. According to Automotive News, Mini’s electric crossover could use the new BMW platform and would be the first 800-volt model of the Mini brand. However, the size of the Mini crossover remains unknown.

See also: BMW Group Invests €800 Million in Mexican Production Site for Electric Vehicles and Battery Assembly

While an electric compact SUV from Mini, the 4.43-metre-long Mini Countryman, will be built in series in Leipzig with an electric drive from January 2024, this model is based on BMW’s UKL platform, which is designed as a mixed platform. A similarly sized or slightly larger model in North America could make sense, especially in view of the geopolitical situation. Unlike an electric Countryman built in Leipzig, an electric crossover from Mexico would qualify for the full $7,500 EV tax credit in the US.

Furthermore, the production of an additional model in San Luis Potosi could increase capacity utilization at the Mexico plant, which is currently only running at 32% of its capacity with the current combustion models. This move would not only allow for electric BMW models based on the New Class, but also for a Mini.

See also: Mexican President AMLO Confirms Monterrey as Location for New Tesla Plant

If Mini does decide to build electric cars in North America, it could gain access to US subsidies and lower its manufacturing costs by avoiding US import duties from China. This decision could also align with BMW’s plans to invest in electric vehicles and reduce carbon emissions across its brands.

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