Rolls-Royce confirmed yesterday that it will build a new two-door convertible inspired by the 100EX experimental car which was developed to mark this year's centenary.

The convertible, codenamed RR02, will be built alongside the Phantom at the Rolls-Royce plant at Goodwood and is expected to be on the market in 2007.

The company is coy about the price for its new four-seater. A spokesman said only that it would be more expensive than the Phantom where the standard version sells for £216,950.

Rolls-Royce employs about 500 people at Goodwood but would not be drawn on whether the deci sion to launch the new model would mean more jobs at the plant.

The RR02 "will mean added volume at Goodwood but it is too early to talk about an increase in jobs", the spokesman said.

Rolls-Royce began taking orders for the car yesterday and said there had been "a lot of interest".

The new car, which will be slightly smaller than the 100EX, will be powered by a 6.75 litre, V12 engine and will use the same aluminium space-frame chassis technology as the Phantom.

So far this year the company has sold 560 Phantoms, short of the target of 1,000 a year average over the lifetime of the model. The spokesman noted that last year 75% of Phantom sales came in the last three months.

The convertible will be the second car to be built at Goodwood since the marque was acquired by BMW and production moved to the new factory. Sales and marketing director Howard Mosher described yesterday's announcement as "another milestone in the brand's history".