The Mini saga takes the wave of the electric

For 60 years, Mini will afford a cure of electrons. Born in 1959, the luxury brand “so British” must present in six months its all-electric version, which it plans to launch at the end of the year. “The triptych, urban, compact and electric makes sense,” says Pierre Jalady, director of Mini France. A good way for the BMW group brand to boost sales, while its growth has stalled in 2018: after a record year of 371,881 registrations in 2017, it posted a slight decline (-1.8%) on the eleven first months of the year.

The Beatles’ favorite little car in the 1960s had already been hit by soft, in the mid-2010s. Retrieved by the BMW group in 1994 during the acquisition of the British Rover, the brand had been relaunched by the German manufacturer in 2001. With a spectacular success: 25,000 in 2001, sales had jumped to 144,000 in 2002 and doubled to 301,000 in 2012-once overcame the slump in the 2008 crisis.

personalization

After a period of stagnation, between 2012 and 2014, the brand saw its growth take off again in 2015, thanks in particular to the launch of two new models , a little less “mini”: the Clubman, a five-door estate of more than 4 meters, whose trunk opens horizontally in the manner of a van, and the Countryman, a small SUV, also five doors.

“A risky strategy: by increasing the size of its vehicles, Mini was out of step with its image,” says Pierre Jalady. “But today, these two models represent two thirds of sales in France, and 40% in the world.” What also boost margins, with models sold significantly more expensive (at least 27,000 euros), with more options. According to Pierre Jalady, nearly 60% of customers opt for a personalization of their Mini: 3D printing has allowed the range of possibilities to expand, beyond the sidebands and two-color paint become classic.

Plug-in hybrid version

The shift to Mini electric started in mid-2017, with a plug-in hybrid version of the Countryman. Between June 2017 and November 2018, 17,330 units were sold. “A real success: this version represents 20% of model sales in France,” says Pierre Jalady.

Expected for the end of 2019, the 100% electric version will be offered on the Mini 3 doors. It will be manufactured in both China and the United Kingdom. The group concluded last July a agreement with Chinese Great Wall to create a 50/50 joint venture, which will manufacture small electric cars in a new factory in Jiangsu Province. For Europe, production will be located in Oxford, where Mini already produces 219,000 vehicles a year.

Offshoring in view

Unless a “hard” Brexit overturns the plans: the BMW group imports 60% of the parts needed for its British factories (Mini but also Rolls-Royce), and some pass the border several times before being integrated into future vehicles. In addition, 80% of Mini produced in Oxford are exported.

The group has already planned to advance the annual closure of the plant, in April instead of a summer month, to counter supply disruptions. But the CEO of BMW Harald Krüger also recalled last October that he subcontracted to the Dutch group VDL NedCar, since 2014, part of the assembly of its Mini (169,000 in 2017) -which led to the passage of transfer more production in case of “hard Brexit” . A threat then virtual, but becomes more plausible as the deadline approaches.

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