Toyota is to build a new version of its Auris car in the UK, the Japanese firm has announced.
The model will be produced at the Burnaston plant in Derbyshire, with engines sourced mainly from Toyota's Deeside factory in North Wales.
The move follows £240 million of investment last year to upgrade the Burnaston site, including £20 million from the Government.
Toyota president Dr Johan van Zyl said the announcement showed the company's confidence in the skills of its UK workers.
He said: "As a company, we are doing what we can to secure the competitiveness of our UK operations as a leading manufacturing centre for our European business.
"With around 85% of our UK vehicle production exported to European markets, continued free and frictionless trade between the UK and Europe will be vital for future success."
Marvin Cooke, Toyota's UK managing director, said: "This is excellent news for Toyota Manufacturing UK (TMUK), our local stakeholders and British automotive manufacturing. It signals Toyota's trust in TMUK's ability to build ever-better cars for our customers.
"The introduction of a new model is a big responsibility and we are committed to building vehicles and engines of the highest quality, at the best cost.
"We will constantly improve our productivity and competitiveness to help secure a bright future for TMUK."
Business Secretary Greg Clark, who visited the Burnaston factory on Wednesday, said the announcement was a vote of confidence in the UK's automotive sector.
He added: "It is testament to the highly-skilled and committed workforce that helps make the UK's automotive sector one of the most productive in the world, and this Government will continue work to create the best possible environment to maintain this fruitful relationship."
Welsh Secretary Alun Cairns said: "Toyota's commitment to the UK is an enormous economic boost for Deeside and Wales as a whole.
"Toyota has played a crucial role in helping to demonstrate why Wales continues to be a prime location to invest and do business through its anchor status on Deeside."