MINI enjoyed high-profile backing at the UK launch of the new car, now under the ownership of BMW. Andrew Smith, chief secretary to the Treasury and MP for Oxford East, where the new car will be built, joined the brand's general manager, Trevor Houghton-Berry, on the stand for the launch of BMW's new contender in a hotly-contested small car sector.

The old Mini sold about 60,000 units a year in the UK during the 1980s, but BMW is predicting it will sell a third of that to British buyers from total production of about 100,000 a year.

Houghton-Berry said: 'This car is very important to us and it is very important to Britain. Nine out of 10 British drivers have at some time in their life driven a Mini and the new car is great news for Britain, as it was designed in the UK and will be built at the Oxford plant.

'This will secure the jobs of 2,500 workers and it will be the only factory in the world where the MINI will be built. Furthermore, British buyers will be first to get the new MINI.'

The car, powered by a 1.6-litre engine, will go on sale in 2001 in MINI Cooper format, and although prices have yet to be announced, they are likely to start from under £10,000. The firm also intends the car to win a four-star rating in the European New Car Assessment Programme.

Houghton-Berry added: 'User-choosers will be important customers for this car. If the new MINI can retain some of the qualities of the old car, while moving forward into the 21st century, then I feel the team and I will have done something special.'

All UK BMW dealers will be offered the chance to sell new MINI. They will need dedicated sales staff and either a separate showroom or a clearly defined MINI sales area.

A number of MINI concept vehicles were also unveiled, including a cabriolet and a pick-up, although no decisions have yet been taken on putting them into production.