The new Mini has been such a success in its first year that a top BMW executive has announced a further £50m investment in Oxford and the creation of another 200 permanent jobs.

Dr Norbert Reithofer, BMW board member for production, said on a visit to the Cowley car factory yesterday the first year of production had far exceeded expectations and customer reaction to the car had been astounding.

He said the original production target to the end of last year had been 30,000 cars, with a second shift introduced by Christmas.

By the end of December, 42,000 cars were made and a three-shift system is now operating at the plant, seven days a week, 51 weeks a year.

Meanwhile, 11,600 Mini sales in the first four months of this year match those for the whole of 2001.

During the course of the year, employment has risen from 2,400 last April to 4,500. About 500 temporary workers have now been given full-time jobs, with a further 200 permanent contracts expected by the end of the year. The £50m will be used to increase production and productivity. A new £10m quality and engineering centre is also nearing completion where cars are rigorously tested and new models such as a diesel and soft top version will be developed. A training facility has also been introduced which will boost the apprentice programme being run at the plant.

Dr Reithofer said: "Customer orders in the United Kingdom and other big European markets have exceeded expectations. With further production rises already this year Plant Oxford will produce the 100,000th Mini during May - just 13 months after the start of volume production."

By the end of this year, Mini will be on sale in more than 50 countries around the world. It recently made its debut in Japan and the US, where customers have been clamouring to take a test drive.