Up to 1,500 jobs are to be created with production of a new Toyota car at the firm's Derbyshire factory.
Toyota said it would be investing more than £100m at Burnaston to make it the sole European centre for making the next hatchback.
The first 500 workers are to be recruited in the middle of next year.
Prime Minister David Cameron, who was visiting the factory, said it was "fantastic news and a massive vote of confidence for UK manufacturing".
Production of the hatchback will lead to as many as 1,500 additional jobs being created in the next two years, the company said.
Mr Marcus McGowan MSc PgDip BA (Hons)
This Business Education Learning Blog is aimed primarily at Higher Business Management students/teachers and ICT students/teachers.
This Business Education Learning Blog is aimed primarily at Higher Business Management students/teachers and ICT students/teachers.
The aim of this blog is to provide you with interesting articles, news, trivia as well as resources or links to materials which will help in your course of study.
I am a Teacher of Business Education and I have written for Education Scotland and BBC Bitesize.
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