The second generation Mini from the BMW Group went on sale in the UK on November 18 - the centenary of the birth of Sir Alec Issigonis, who created the original Mini in 1959.

So what is new about the new Mini? Every exterior body panel is new and the whole of the interior is new, the 1.6-litre engines are new, more powerful and built in Britain, there are new lower levels of emissions, improved fuel consumption, the suspension and transmissions are new and of course new prices apply.

At this stage, only the Cooper, costing £12,995, and the Cooper S, priced at £15,995, are to be launched this year and Mini One at £11,595 will be introduced in the first half of 2007 with a 1.4-litre petrol engine.

Only the Mini badge, the go-kart handling and the classic wheel at each corner' three-door body design are retained for the new Mini.

Even with all these changes the external image has only altered subtly, it still looks like Mini. The body is 60mm longer to incorporate the latest pedestrian safety requirements and, together with the increased interior safety equipment, high Euro NCAP safety ratings are expected.

The interior keeps the same Mini styling theme but has been improved considerably both in design, levels of specification and, most of all, quality. New Mini is a premium product in the small car sector.

Mini aficionados will be pleased to hear the centrally positioned speedometer has been retained, but prepare to be surprised by its new larger size, as it now dominates the fascia.

New catches to pull the front seatbacks forward make getting intro the rear of the Mini easier, and the sculptured backs of the front seats allow a shade more legroom for rear passengers. It is still not roomy, but it is better.

The rear seats now fold 50:50 to increase the small boot space. Another new feature is the Mini key, a fob with a memory slots into place in the fascia and then the on/off starter button is used.

Both the Cooper and Cooper S models are available with new six-speed manual transmissions as standard at launch or with the option of paddle-shift automatic transmissions shortly.

The Cooper S has an additional Sport button to sharpen up the response of the throttle, electronic power steering and, in the future, the shift patterns of the auto transmission. Bigger brakes and a new suspension with springs and dampers optimised for each model type are part of the many technical specification changes.

Probably the most significant changes relate to the two new 1.6-litre, four-cylinder petrol engines both designed by BMW and assembled at BMW Group's Hams Hall engine plant.

The unit used in the Mini Cooper has 120hp and 160Nm of torque at 4,250rpm. Using the BMW Valvetronic system, fuel consumption and emissions are reduced.

The Mini Cooper S introduces turbo-power to the Mini family. Gone is the heavy supercharger system, and the new 1.6-litre BMW unit with its direct injection petrol and twin-scroll turbocharger layout produces 175hp with peak torque of 240Nm between 1,600 and 5,000rpm. During my Spanish pre-launch test drive, average fuel consumption was 33.4mpg.

From these figures there is no doubt that the Cooper S is the much faster and more responsive model. Both retain the Mini's traditional go-kart handling with incredible amounts of grip and predictable surefootedness.

The electronic power steering mostly gave good feedback, though perhaps it is a little too refined for real cut and thrust driving over poorer roads, but for mainstream driving it will be liked. The suspension was compliant and absorbed the potholes well, only the stiffer set-up on the Cooper S felt harsh under some conditions.

The Cooper model, although noticeably down on power and with far less grunt' than the Cooper S, was overall marginally the best drive. With its narrower tyres and less torque-steer it seemed more agile through tight corners and on twisting roads, and better balanced.

On open roads, once a high cruising speed had been reached, it provided a pretty relaxed and noise-free drive. It is also £3,000 cheaper than the Cooper S.

However, two new great Mini models are soon to be with us - and I would be happy with either of them.