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New MINI boosts UK motor industry - Investment and new jobs welcomed by Rt Hon Gordon Brown MP, Chancellor of the Exchequer

£200 million investment and 450 new jobs created by BMW Group +++ UK-based suppliers invest £40 million and create 750 new jobs +++ MINI production triangle in the UK established +++ UK content for new MINI rises from 40 to 60 per cent +++ Production capacity increases from 200,000 to 240,000 vehicles per annum in medium term

MINI

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. £200 million investment and 450 new jobs created by BMW Group
. UK-based suppliers invest £40 million and create 750 new jobs
. MINI production triangle in the UK established
. UK content for new MINI rises from 40 to 60 per cent
. Production capacity increases from 200,000 to 240,000 vehicles per annum in
medium term

The new MINI will be produced in Oxford with a 20 per cent expansion in
capacity to 240,000 cars a year as part of a £200 million UK investment by BMW
Group, which will also create 450 new jobs, it was announced today (September
13th).

The worldwide success of the MINI over the past five years has prompted BMW
Group to invest heavily in its UK manufacturing operations for the new model,
creating a MINI production triangle in the UK linking its plants in Oxford,
Swindon and Hams Hall near Birmingham.

The Chancellor of the Exchequer, the Rt Hon Gordon Brown MP, was at BMW Group's
Oxford plant for the start of production of the new MINI, along with guests
from UK industry and BMW's Group's recently-appointed Chairman of the Board of
Management, Dr Norbert Reithofer.

The company's plants at Oxford, Swindon and Hams Hall, have all received
substantial investment from BMW Group to build the new model. As production
levels rise, up to 250 new jobs will be created at Hams Hall and 200 jobs at
Oxford.

Dr. Reithofer said: "The MINI has been an outstanding, international success
for the company and our investment will ensure that we can build on this
success in the future. Our new MINI production triangle has established a
lean, efficient and flexible production network and allows us to continue to
offer MINI customers unrivalled built-to-order flexibility in the small car
segment".

The Oxford assembly plant has received over £100 million to expand production
levels from 200,000 to 240,000 units a year in the medium term, Plant Swindon
£60 million for MINI body pressing and sub-assembly technologies and Hams Hall
nearly £30 million to build a new, advanced family of petrol engines especially
for MINI and previously sourced from Brazil.

BMW Group has re-located significant components, such as engines, to the UK.
The UK-based supply industry is also benefiting with key, large-scale
components -known as modules - being sourced from within the UK.

A number of external suppliers of these sub-assemblies have also invested in
new facilities to be within one hour's travelling time of the Oxford plant to
meet rising production levels and BMW Group's requirement for a lean, efficient
and flexible manufacturing system within the UK. This represents a supplier
investment of more than £40 million and the creation of more than 750 jobs in
the UK automotive supply base and sees British content of the new MINI rising
to 60 per cent from 40 per cent on the previous model.

Launched by BMW Group in 2001, more than 880,000 MINIs have so far been
produced and sold with 75 per cent of production being exported to over 70
markets worldwide.

Body panels and sub-assemblies can be supplied at four hours' notice from Plant
Swindon to Plant Oxford and the engines are delivered from Hams Hall not only
just-in-time but in the correct sequence, directly to the assembly line.

The pioneering flexible working system, introduced at Oxford in 2001, has been
replicated at the two other MINI production triangle plants to enable working
across the three factories to be equally responsive to customer choice of model
derivatives and options, as well as overall levels of demand.

BMW Group currently employs around 8,000 people in its UK operations with an
additional 10,900 within its 156-strong dealer network. As well as the plants
at Oxford, Swindon and Hams Hall, BMW Group has established a headquarters and
manufacturing facility at Goodwood for the manufacture of Rolls-Royce Motor
Cars.

Since 2000 the company has invested £800 million in its UK operations. Today's
announcement brings the total to nearly £1,000 million.

Ends

Editor's Note:

The new MINI
The new MINI Cooper and MINI Cooper S will go on sale before the end of the
year featuring a revised body design, striking modern interior and new
high-performance engines with lower fuel consumption and reduced emissions. As
a result, the MINI Cooper moves from VED Band E to Band C and the MINI Cooper S
to Band D from Band F.

The new MINI Cooper produces 120hp, accelerates from 0-62mph in 9.1 seconds and
reaches a top speed of 126mph. The MINI Cooper S is powered by an intercooled
and turbocharged version of the same power unit and produces 175hp.

It covers the 0-62mph sprint in 7.1 seconds and achieves a top speed of
140mph. The new MINI One and a diesel-engined MINI will follow in the first
half of 2007. Prices for the new range start from £11,595 on the road.

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CO2 emission information.

The values for fuel consumption, CO2 emissions and energy consumption shown were determined in a standardised test cycle according to the European Regulation (EC) 715/2007 in the version currently applicable. The figures refer to a vehicle with basic configuration in Germany and the range shown considers transmission (automatic or manual) and the different wheels and tyres available on the selected model and may vary during the configuration.

The values of the vehicles labelled with (*), are already based on the test cycle according to the new WLTP regulation and are translated back into NEDC-equivalent values in order to allow a comparison between vehicles. More information on the transition from NEDC to WLTP test procedures can be found here.

These figures are intended for comparison purposes and may not be representative of what a user achieves under usual driving conditions. For plug-in hybrid vehicles and battery electric vehicles the figures have been obtained using a combination of battery power and petrol fuel after the battery had been fully charged. Plug-in hybrid vehicles and battery electric vehicles require mains electricity for charging. The CO2 emissions labels are determined according to Directive 1999/94/EC and the Passenger Car (Fuel consumption and CO2 Emissions Information) Regulations 2001, as amended. They are based on the fuel consumption, CO2 values and energy consumptions according to the NEDC cycle.

A guide on fuel economy and CO2 emissions which contains data for all new passenger car models is available at any point of sale free of charge. For further information you can also visit this link.

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