A new generation of engines for the future BMW plug-in hybrid sports car will be built at a Midland factory.
Ian Robertson, of the BMW's Board of Management, said the 3-cylinder petrol engines will be produced at the Hams Hall factory, near Birmingham, which last week produced its three millionth engine since it opened in 2001.
Speaking at the Society of Motor Manufacturers and Traders (SMMT) International Summit in London, Mr Robertson, said: "The new 3-cylinder petrol engines will enable our future BMW i8 plug-in hybrid sports car to set new standards for dynamic performance in combination with industry-leading fuel-efficiency and low carbon emission levels."
Business Secretary Vince Cable said: "BMW's decision to produce engines for their i8 plug-in hybrid sports car at Hams Hall is more good news for the UK automotive sector and underlines its growing competitive strength. It is yet another indication that international companies see the UK as one of the best places to develop and manufacture low emission vehicle technologies."