Is BMW ditching British manufacturing of electric Mini over Brexit fears?

German car giant BMW could move the production of the new electric Mini Coopers to Germany, due to uncertainty generated by ongoing Brexit worries.

The majority of Minis are produced at BMW's Oxford plant, one of the biggest car plants in Britain, but the new electric models, which are scheduled to go on sale in 2019, could be made at plants in Regensburg and Leipzig.

According to German daily Handelsblatt, BMW could also consider producing the cars at one of its plants in the Netherlands, which currently account for approximately 33% of all Minis produced.

However, BMW said the decision on where to build the full-electric Mini will be taken this year.

"As formal negotiations between the UK and the EU have not even begun yet it is too early to comment on what Brexit will mean for our business," it said.

"The BMW group has always made clear that we believe integration of the UK into the EU single market, maintaining free movement of goods, services, capital and talent, would be best for business."

The German company also urged the government to take the concerns of international business into account. "What's important for us is that the UK's negotiations with the EU result in uncomplicated, tariff-free access to the EU single market in future.

"As a major investor and employer in the UK, the BMW group urges the government to take the concerns of international business into account. Not only free trade but also cross-border employment opportunities and unified, internationally applied regulations are of proven benefit to business, the economy and individuals."

News of BMW potentially moving production of Minis away from Britain could be the latest blow for the UK's car industry, which has been come under pressure over the last few months.

Earlier this month, the owner of Peugeot, PSA Group, revealed it was in talks with General Motors over buying the latter's Opel and Vauxhall brands in a deal which could threaten thousands of jobs at Vauxhall's factories in Ellesmere Port in Cheshire and Luton in Bedfordshire.