A new version of the Mini will not be built at the Cowley plant, bosses have admitted.

While details of the model known as the Sports Activity Vehicle are being kept under wraps, managers at the plant's parent company BMW, say it will be assembled elsewhere.

The move marks a major shift in policy by the German company, although factory spokesman Rebecca Baxter denied there were any moves to shift the main areas of Mini production elsewhere.

Ms Baxter said: "The SAV is not going to be built in Plant Oxford but it will remain the lead plant for Mini production.

"With the SAV we are looking at co-operating with an external partner but we don't know who that is going to be - it is an ongoing investigation for us."

While Ms Baxter also declined to be drawn on where the new model might be built, she claimed it spelled "good news" for the Cowley works which employs 4,700 workers.

She added: "It means we will have the flexibility for further growth with the three main models being produced here. This is not about a lack of commitment to Oxford."

In the last two years BMW has spent £100m on the Cowley plant, and recently announced that its productiuon capacity was to be extended from 240,000 cars to 260,000 cars, although that target will not be reached in the short term.

By teaming up with and using the facilities of another manufacturer, Ms Baxter claimed it would lead to a cut in the time needed to develop the new model.

10:34am Thursday 4th October 2007

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