The money will be used to increase production of the iconic Mini car at its factories in Oxford, Birmingham and Swindon. More than 5,000 workers are involved in the production of the Mini in the UK.
Last June BMW announced a seperate £500m investment in its UK productions. Today the firm said it’s investment showed its commitment to Britain "as a vital manufacturing base".
BMW board member Harald Krueger said in a statement, "Over the last decade, Mini has become a unique global success and the BMW Group has even greater plans for the future development of the brand.
"This additional investment is great news for all our employees in the UK."
In the “medium term” however, BMW said it was considering setting up “satellite production” of the Mini outside the UK, due to capacity constratints at it’s plant in Cowley, Oxford.