BMW is to invest £500 million in the UK over the next three years as it confirms the new Mini will be built at its Oxford plant.

The news, which will safeguard over 5,000 jobs, comes after Nissan announced that it would build its next generation Qashqai in the UK.

"We have started preparing our UK plants for production of the next generation Mini and this investment underlines that the UK will remain the heart of Mini production," Norbert Reithofer, the BMW chairman, said.

New production facilities will be built at BMW's Oxford factory, while the investment is also to provide a boost to a pressings plant in Swindon and its engine plant at Hams Hall, near Birmingham.

Prime minister David Cameron welcomed the announcement as he hosted a meeting with the Board of Directors of the European Automobile Manufacturer's Association, which represents some of the biggest car, truck and bus manufacturers in Europe, including Fiat, Volvo, Renault, Jaguar Land Rover, Ford and Toyota.

"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.

Since starting production in Oxford in 2001, over two million Minis have been built by BMW, mainly for export. Minis account for around 17 per cent of the UK's annual automotive production.

<b>Source:</b>
<br/><br/>
<a href="http://www.bbc.co.uk/news/business-13702034">BMW to invest £500m in UK factories (09/06/11)</a>

&copy; Adfero Ltd