BMW has pledged to meet its commitment to create 1,500 jobs with the construction of an engine plant at Hams Hall, Warwickshire. The site is already under construction at a cost of £400 million and will be the production centre of four-cylinder and 'V' engines when production begins later this year/beginning of 2001.

BMW retains control of the plant in its sale of Rover assets and now German executives have given a pledge to its future at a meeting with North Warwickshire MP Mike O'Brien. O'Brien said: 'BMW executives were bullish about the investment, adamant it will happen and indicated it would make engines for the new BMW mid-range car, as well as supplying engines to Alchemy.'

Trade and Industry Secretary Stephen Byers has received an assurance from BMW that it will 'protect as many jobs as possible' in its sale of Rover. Byers said of a meeting with BMW executives: 'The Government and BMW agreed that we now need to look forward and plan ahead.'