THE German car maker, BMW, plans to invest #2.3 billion (£1.81 billion) over three years to develop two replacements for the 200 and 400 models of its British unit, Rover.

The decision was made despite an estimated #77 million (£60.64 million) loss by Rover last year. It also comes after a major shake-up of BMW's executive board at the beginning of February, stemming from Rover's problems.