ROVER has dismissed as "speculative" reports that production of the Mini for the new Millennium could be moved to Hungary.

It said both BMW and Rover's preferred option was at Rover's Longbridge plant in Birmingham but it depended on "cost reduction, business efficiencies and other measures".

The car is expected to go on sale in the next century, more than 40 years after the classic car first went on the market in 1959.

BMW executives have reportedly examined several sites in Hungary, while Poland or the Czech Republic are other possibilities for Mini production if the Government does not agree to a £200m aid package for Longbridge, according to The Independent newspaper.

But Rover director of public affairs Brian Johns said he was not aware of any factfinding missions taking place.

He said: "We have made it clear we want to produce it in Longbridge. The main issue is reaching agreement with the trade union on greater efficiencies and cutting costs."

Liberal Democrat Trade and Industry spokesman David Chidgey opposed any possible move.

"Any attempt to export British jobs to Eastern Europe must be resisted by the Government with all means available," he said.

Talks aimed at reaching a deal to safeguard Longbridge, Rover's biggest UK factory, are continuing.

Unions have been locked in negotiations with the company since it emerged last month that the Birmingham factory faced possible closure with the loss of thousands of jobs.

Tony Woodley, national officer of the Transport & General Workers Union, said negotiations were proving to be possibly the most difficult he had been involved with.

Rover is seeking to make savings of £150m a year through job cuts and changes to working practices.

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