BMW will invest £250 million in its three Mini factories in the UK.
The Hams Hall site near Birmingham will benefit from the boost.
Today's news follows an investment of £500 million, and means additional job security for the 5,500 UK Mini workers, said BMW.
Business Secretary Vince Cable said: "BMW's ambitious plans for Mini will ensure its UK sites at Oxford, Swindon and Hams Hall remain at the centre of Mini production worldwide. The investment of £250 million in addition to the £500 million last year demonstrates BMW's commitment to the UK and safeguards jobs for the future."
– Harald Krueger, Member of the Board of Management at BMW Group
"A year ago we announced a further investment of £500 million in our UK production network by 2014 and today we are announcing an additional £250 million, taking us through to 2015. This brings the total to £1.75 billion since 2000."
Unite assistant general secretary Tony Burke said: "This major boost in investment is tribute and reward for the dedicated and hard-working workforce at Oxford, Swindon and Hams Hall.
"The British car industry is once again a ray of sunshine in gloomy times for British manufacturing.
"The UK has the potential to be a manufacturing success story if we had a government which was prepared to roll its sleeves up and intervene to support employers up and down the UK."