BMW will be putting a diesel engine in the MINI, but not until 2003.

According to a MINI spokesman, the manufacturer has looked at a number of units from various manufacturers and has considered building its own small diesel engine, following the success of BMW oil-burning motors.

Sources indicate that BMW has decided on the 75bhp 1.4-litre 16-valve diesel from Toyota that will soon be available in the Yaris.

From a company car perspective this would create an odd situation where, because of the low CO2 emissions of the 1.6 petrol engine, the 3% diesel supplement will make the diesel less company car tax efficient in 2003, and most probably neutral in 2004.