Nissan is adding a further 280 manufacturing jobs at Britain's largest car plant in Sunderland.
The Nissan factory in north-east England has a symbolic role in Britain's recent industrial history after being widely credited with launching a revival of car-making when it opened in the mid-1980s.
The Japanese automotive group has confirmed that the global model of its Infiniti brand will be built in Sunderland creating the jobs at a plant that employs about 6,000 people.
Nissan expected the £250m investment to create a further 720 jobs in the UK supply chain, raising the new jobs total to 1,000. It also confirmed that the plant, which makes the Qashqai, Juke and Note models, will this year become the first in the UK to make 500,000 cars in a calendar year.
The announcement is in effect a swap for the construction of Nissan's new compact car, announced in March. That task is going to a plant outside the UK.
Vince Cable, the business secretary, said the move was a "strong endorsement" of Britain's car industry.
Referring to government support for the industry that includes a new tax credit for research and development and a £341m investment in automotive companies from the government's Regional Growth Fund, he added: "The auto sector is living up to being one of the great success stories of our industrial strategy and a testimony to government and private sector working together in close partnership."
Colin Dodge, Nissan's chief performance officer, said: "This milestone, our first premium product to be manufactured at Sunderland, reconfirms our commitment to UK manufacturing and the ongoing success of the plant."
David Cameron said: "This investment is excellent news for the north-east and another vote of confidence for UK manufacturing. The continued success of Nissan in the UK demonstrates the strength of the car industry here, and its importance as we rebalance and grow the economy.
"This announcement shows how the car industry in partnership with the government continues to win important long term investment projects in a tough competitive sector, helping the UK to get ahead in the global race."
