Inside the Mini compound

Visitors surrender their passports upon entering Mini headquarters in Germany. It's for security reasons mainly, and obviously the passports are returned on the way out. But the symbolism is obvious: Mini is a world a way from parent BMW.

As part of the first group of journalists allowed to tour the Mini compound, AutoWeek got an up-close look what really makes the brand so unique. It's not just a car, execs argue, it's a lifestyle. There are two groups of buyers--those who love the sharp reflexes and potent turbo power (stick shift too, please,) and those who love living the Mini life.

And it seems to be working.

Born out of the Suez Canal crisis more than half a century ago, Mini has historically avoided sales dips from increases in fuel prices. In fact, costlier gasoline is generally good news for Mini and its brand of efficient cars.

Mini sold 234,000 cars worldwide last year, and 2011 is poised to best its best year ever. The company revealed the Rocketman concept in February in Milan, ahead of its motor-show debut in Geneva. That follows the recent Paceman and Beachcomber concepts, which have been well-received, and a much-anticipated return to the World Rally Championship.

So the brand has gained considerable traction since its relaunch in 2001, but it's not just numbers. At Mini HQ, there's ambient lighting, racks of Mini clothing and two barlike settings with stools and a flat screen. Not exactly conference room 5C.

All of this is by design. Contrasting from the efficient, historic demeanor of BMW, Mini has tried to convey attitude since the start. The British brand claims buyers are an average of 42 years old in the U.S. market, evidence it's thinking young, but not forcing false youth.

"We had a chance to work on our own--not influenced by BMW," said Renate Fritz-Reymann," head of strategy and planning for Mini. "We had a chance to go our own way."

Interestingly, Mini's research shows many owners name their cars, something it's hard to envision a BMW owner doing to his 7-series.

"It's a part of the family that's living in the garage," Fritz-Reymann said.

Still, even members of a cult have to go outside for food sometimes, and Mini brass admit they've faced challenges moving beyond the small-car shell--a key reason for the addition of more doors and space.

"What we've had to change is the image that Mini is a one-product brand," Fritz-Reymann said.

The company also faces new competition from the Fiat 500 and renewed attention to compact cars. Mini brass say they welcome the attention. As Fritz-Reymann put it, "Small cars are in now."

By Greg Migliore