The German car giant said it would be investing another £500 million in UK car manufacturing in what David Cameron said was a “tremendous vote of confidence” in the workforce.
New production facilities and equipment are to be installed at the Mini assembly base in Oxford, the pressings plant in Swindon and its engine plant at Hams Hall near Birmingham.
The announcement came as the Prime Minister prepared to meet the board of directors of the European Automobile Manufacturers’ Association in Downing Street.
This comes along with news that Nissan said it was investing £192 million to build the next version of its Qashqai model in Britain. That is expected to safeguard 6,000 UK jobs.
Mr Cameron said the announcements were evidence that the Government was helping rebalance the British economy with a strengthened manufacturing sector.
“The production and export of iconic British cars like the Mini is making a real contribution to the rebalancing of the economy that this government is determined to achieve,” he said.
The new Mini coupe is to be launched in 2011 and the Mini Roadster in 2012. Both are to be produced in Oxford, where more than 2 million Minis have been built since 2001 – three-quarters of them for export.
The company said it had invested £1.5 billion in the UK since 2000.