The German company BMW is expected to announce plans for a new factory to build Rolls Royce cars later today. The plant will be built at Goodwood in West Sussex at a cost of up to £200m, and is likely to employ between 300 and 400 people.

At the moment Rolls Royce Cars are made by Volkswagen, but in three years the brand will be taken over by BMW.

However, only the Rolls Royce name will change hands, and not the existing factory at Crewe, so BMW – which recently sold the bulk of its Rover empire – needs to build a new one.

It is believed the old motor racing circuit at Goodwood has been chosen ahead of Cowley in Oxfordshire and a site west of London on the M40.