FRANKFURT -- BMW may build a Mini EV in Germany instead of the UK in response to plans by Britain to leave the European Union's single market, the Handelsblatt daily newspaper reported.
BMW may shift manufacturing to its German production sites in Regensburg and Leipzig, the paper said, citing company sources.
Production at Netherlands-based contract manufacturer Nedcar could also be an option, it said.
BMW plans to start talks with the British government next week, Handelsblatt said, adding that a decision would have to be made during the second half of the year.
BMW said in October that Mini will launch an EV in 2019 as part of a broader push to make electric cars more mainstream.
The automaker was reconsidering its plans to build the EV at its home factory in Oxford, England, due to the uncertainty about future tariffs after the UK voted to quit the EU, Automobil Produktion reported in January.