BMW to build new version of 60s icon Mini in UK

Luxury car maker BMW has announced it would build a new version of 60s icon Mini in Oxford, as part of £500 million investment over next three years.

The investment would secure 5,000 UK jobs at Mini's Oxford plant as also BMW bases in Swindon and Birmingham. Analysts see the move as a vote of confidence in the government's plan to rebalance the economy towards manufacturing.

The German company's announcement comes as the leaders of some of the biggest carmakers in Europe – including Carlos Ghosn of Renault-Nissan, Sergio Marchionne of Fiat, and Dieter Zetsche of Daimler – met David Cameron at Downing Street.

The car makers are reported to have warned the prime minister on the need for a ''level playing field'' in trade agreements between Europe and Asia, and for Britain to grow its supply base.

Cameron told industry leaders that the UK really wanted to see the automotive industry flourish and was determined to do the things to help it succeed.

According to Zetsche, president of Acea, the car industry's European trade body, the positive approach taken by the UK government towards automotive innovation was welcome and it was first and foremost the responsibility of the automobile manufacturers to ensure competitiveness, and they would pursue that goal head-on. However, certain issues were beyond its reach in which governments could play an important role.