About 1,000 jobs will be created in the UK after Nissan announced plans to build the latest model from its premium Infiniti brand at its plant in Sunderland.
The Japanese car company will invest £250m to develop the factory, creating 280 jobs at Nissan and a further 720 in the supply chain.
The new car, as yet unnamed, will be produced only in Sunderland, starting in 2015.
Vince Cable, the Business Secretary, said the move "is a strong endorsement of the quality of Britain's car industry, which is creating jobs, taking on apprentices and contributing to building a stronger economy".
The news provides a further boost to Britain's car market, which is performing much better than the rest of Europe, in terms of both sales and production.
The number of cars sold in the UK jumped by 11.3 per cent to 149,191, compared with the year before, while Europe posted an overall decline of 10.3 per cent, according to the European Automobile Manufacturers' Association. British car production rose by 9.2 per cent to 1.36 million in the year to the end of November, according to the Society of Motor Manufacturers and Traders.