Mini milestone (From Banbury Cake)

Mini milestone

8:20am Thursday 9th July 2009

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This was a “happy story”, as Oxford East MP Andrew Smith remarked, after the 1.5 millionth new Mini — a Clubman destined for a British buyer — rolled off BWM’s Cowley production line to the applause of assembled media, politicians, company bosses, and a handful of apprentices.

As it happened, the runaway successful little car reached the milestone on the day that the Society for Motor Manufacturers and Traders (SMMT) issued figures showing that total UK registrations of new cars fell in June, by 15.7 per cent compared to the same month last year, to 176,264 units. So far this year, demand has fallen by a staggering 25.9 per cent.

But politicians, who I sensed were already changing up into election gear, found something to cheer about here too — namely that the figures show the smallest monthly decline since July 2008 Ian Lucas, minister responsible for the automotive sector at the Department of Business, Innovation and Skills, said “The slowdown in decline shows the success of the Government’s scrappage scheme and I feel cautious but optimistic about the future.”

He added that the Government was backing the the automotive sector with financial help and support for its research into ever lighter and more environmentally friendly cars, including the new electric Mini E, now being developed in Germany with academic help from Oxford Brookes University.

There was little news forthcoming about possible Government bail-out money for the sector, but on this subject BMW’s director responsible for sales and marketing, Ian Robertson, said: “Any Government grants to help the industry should be made on the basis of a level playing field.

“If they are available to Vauxhall, for instance, they should also be available to BMW.”

He added: “This is a tough time for the car industry and no business is immune from its challenges, but the Mini is an extremely resilient brand with huge customer appeal and we have seen a strengthening order bank in recent years.”

Last month the Mini plant in Oxford took on more agency staff in response to a pick-up in business.

Certainly, declines in sales of the Mini are slower than is the general rule: in June this year 4,665 Minis were registered in the UK, down 11.9 per cent on the same month last year Worldwide, the Mini sold 22,273 cars in June, down 8.9 per cent on June 2008. So far this year, BMW has sold 101,534 Minis, down 19.9 per cent on the same period last year.

BMW says it has invested more than £380m in its Oxford plant since 2001, the year the new Mini was born, and a further £100m in the Hams Hall and Swindon plants, which make up the Mini production triangle.

On the vexed question of whether Government support for the car industry, whether for green research or anything else, would in the end go to support German jobs, Mr Lucas said the UK government was working with the German government in backing the electric Mini.

He said: “We are working together. Much of the infrastructure is here.

“The days of the single-country company are over. We need an integrated approach.”

But there are some who question how “green” the Government’s approach to the car industry really is, even questioning whether a new Mini is more fuel efficient than an old one, last produced nine years ago. After all, modern Minis, often complete with air conditioning to deal with hotter weather caused by increased carbon emissions, weigh much more than their pre-2001 forbears.

Unfortunately, official figures for the old 850 cc Mini are not available, but David Wilsdon, of Farmoor-based chartered certified accountants Green Accountancy, said: “In general terms, it seems that modern Minis are more efficient than their older counterparts.

“An R55 Cooper Clubman has official emissions of 132g CO2 per km.

“Official emission figures for older Minis do not exist. However, an old Mini Saloon (1988-2001) Cooper 1.3i 2d is quoted as having a miles per gallon (mpg) figure of 43, which equates to 152g of carbon dioxide per km.”

He adds that you need to drive a new Mini for 25,000 miles to make up for the carbon emitted by producing the car in the first place, as opposed to continuing to drive your old Mini.

And like many environmentalists, he says that, in green terms, giving people money to scrap their old car and buy a new one makes less sense than paying them to give up their cars and not buy a new one. (But of course there are jobs at stake here.) He said: “There are many tax savings and many other benefits available to those who reduce the impacts of their travel, energy and resources use.

“We are seeing small businesses grow, save costs, reduce tax and motivate their workforce by taking up environmental issues.”

And as Mr Robertson pointed out to me: at present the Government earns huge revenues from petrol duty.

If electric cars become the norm, it will presumably have to introduce taxes on battery charging.

But it would be churlish to spoil the party.

As Oxford MP Andrew Smith said: “This is a happy story for Oxford and we are proud to have the Mini plant here.”

And all in all, the Mini is steering its way through the shoals successfully, providing customers with what they want.

Mr Robertson said: “This is a great day for the plant and a wonderful milestone to reach in the 50th birthday year of the Mini.”

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