The start of production of the new Mini was expected to be announced today by the car's German owner, BMW.

The 1.6 litre-engined Mini and the Mini Cooper made at its Cowley plant will go on sale in the UK on July 7. About 2,500 workers will produce the new models, and BMW said it plans to take on a further 1,800 staff.

The Mini will be priced around £10,000 and BMW has had about 2,000 expressions of interest from prospective UK buyers and 5,000 worldwide.

BMW hopes to build 100,000 Minis a year from next year. About 20,000 will be sold in the UK and about 20,000 in America, with the rest going mainly to France, Germany, Italy and Japan.