The source said BMW would review potential production locations in Germany, Britain and the Netherlands for manufacturing a fully battery-powered electric version of its Mini hatch, which is already being produced in Born, the Netherlands, and Oxford, England.
News of BMW potentially moving production of Minis away from Britain could be the latest blow for the UK's vehicle industry, which has been come under pressure over the last few months.
BMW is pondering building the upcoming all-electric Mini in Germany rather than Britain as originally intended.
Amid Brexit uncertainties, BMW might opt for a manufacturing base outside the United Kingdom, possibly Germany, for electric Minis.
Though Nissan had agreed to increasing investment in its Sunderland facility, the prospect of job losses at Vauxhall's factories in Ellesmere Port and Luton in the event the PSA Group, the owner of Peugeot, completed a deal to buy General Motors' European business, which included Vauxhall and Opel, loomed large.
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BMW prepares to bring the electric Mini to market in 2019. The German company says it will make a decision this year about where to produce the auto.
However, BMW said the decision on where to build the full-electric Mini will be taken this year.
The German company also urged the government to take the concerns of worldwide business into account.
Despite the fact that Prime Minister Theresa May has announced that the government intends to abandon membership to the single market in order to proceed with Brexit negotiations, BMW were clear to emphasise that it remains imperative to their business remaining in the UK.