The chief executive of German car manufacturer BMW has told the Financial Times that new jobs and investment will be created at the company’s Cowley plant near Oxford with the manufacture of two new models of the Mini car.

Norbert Reithofer’s comments confirmed remarks by business secretary Lord Mandelson that the two new models would be “very good news for Oxford and for the UK car industry”.

The two new models are set to be unveiled at the Frankfurt car show later this month.

BMW let 850 workers go last February, but many of those workers have been rehired because of increasing demand worldwide for smaller cars.