New Mini will NOT be built in Britain

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The news comes as BMW announced that the capacity of the booming Mini factory in Oxford is to be expanded to produce 260,000 cars a year - 20,000 more than the 240,000 already earmarked.

But a sports utility version of the MINI will be "outsourced" to a third party, BMW Chief Executive Norbert Reithofer said.

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A new Mini - but the latest version to come out will NOT be built in Britain

Mini has just launched a new Mini Clubman estate car, with two open doors at the back and a double opening at the side.

The new five-seater Clubman, with a bigger and flexible boot, is aimed at young couples with families - or even pets - with an active lifestyle who like the excitement of the Mini hatchback but also need the flexibility of a small estate car.

The off-roader will aim to attract rugged adventurous types who like to head to the beach. BMW confirmed last night that it will not be built in Britain.

Dr Reithofer didn't say who might build the Mini spots utility vehicle, but experts point out that the first generation of its larger cousin, the BMW X3 off-roader is built by Magna Steyr in Graz, Austria.

BMW is also to build a "baby" off-roader, the BMW X1. it is also to build a four-door Gran Turismo sports car, similar to a prototype shown recently in Shanghai.

The BMW boss added that the company was open to buying up another car-maker to add to its portfolio which include rolls-Royce.

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The vintage Mini clubman - always British-made

He said: "acquisitions in principle remain on our agenda. For possible acquisitions in the future, we have clearly defined criteria in the strategy process. That way, we can act swiftly when needed," he said.

The car giant has invested £100 million and created 200 more jobs at the factory - taking the total workforce at Oxford to 4,500. But with an engine plant at Hams Hall and a body pressing plant in Swindon, the total UK workforce is 6,800. The investment is on top of £280 million between 2000 and 2004.

The UK remains the largest market, but 70 per cent of production is exported around the world, with the two biggest markets the US and Germany.

The original Mini was created in 1959 by the late Sir Alec Issigonis.