Externally, there"s...

Externally, there"s a subtle but significant makeover. The trademark large headlamps are reshaped and mounted to the front of the car, rather than on the bonnet. Meanwhile, the grille is redesigned and more upright, leaving a shorter bonnet opening. This simpler design will help improve the MINI"s Euro NCAP pedestrian crash test rating.

Restyled rear lenses, a lower boot lip and bigger wheelarches are the only other significant changes, as the current car"s looks are already so popular.

A new range of engines will be jointly developed with PSA Peugeot Citroen, and feature BMW"s Valvetronic technology to boost fuel economy. And by introducing a higher-powered diesel to the line-up, the firm will offer a MINI Cooper D model as well as the One D. Most versions will feature a six-speed gearbox as standard, with the option of CVT and sequential autos. Performance variants will also have a Sport mode, which adjusts traction control and suspension settings for high-speed driving.

The cabin will continue with its central speedo and retro toggle switches, but there will be a wider choice of options. Wood and body-coloured trim will be offered, along with a BMW iDrive-style joystick controller for operating sat-nav and audio systems. Hi-tech gadgets such as an MP3 music player and Bluetooth wireless phone connection will also be available.

The next-generation MINI is likely to appear at the 2007 Geneva Motor Show, and hit the UK that summer. A successor to the popular Convertible is expected in early 2008.