BMW has delayed the development of its next-generation Mini as it seeks to pare prices and as ambiguity over Britain’s trade connections with the European Union makes long-interval funding decisions harder.
The German car manufacturer has developed three gen of the Mini since buying the marque from Rover in 1994, keeping each automobile in the marketplace for about six years.
The current Mini hatch model, which has been available on the market since 2014, is constructed on the company’s technological platform known as UKL1.
Pressure has risen on car manufacturers to free up assets, so they can shoulder hefty investments to construct next-gen low emission electric, hybrid, and linked autos.
The combustion-engined metropolis car has suffered as customers migrated toward more significant sports utility automobiles, and tightening emissions guidelines force car manufacturers to incorporate costly modifications to exhaust systems.
Anti-air pollution guidelines and cost stress have already forced Opel and Vauxhall to remove Adam and Karl’s models from the sale. Mini’s sales plunged 4.1% in 2019 to 346,639 vehicles and showed an 18% plunge in enrollments in December.
In March, BMW stated it would seek 12 billion euros ($13.3 billion) in cost savings and performance gains by 2022-end. To reach its objective, BMW is suspending the number of available engine and gearbox combinations by 50% and slashing automobile development costs.
New automobile platforms cost around 1 billion euros in research and improvement costs and are used for about six years, Juergen Pieper, an auto sector analyst at Metzler said.
It is for this reason that a number of car manufacturers have sought to carry over as many standard parts into next-gen automobiles.