Japanese carmaker Nissan is to invest £100 million in its Sunderland plant to build the next generation Juke.
The investment will support 34,000 automotive jobs, including 27,000 in the UK supply chain.
Nissan said production of the new Juke “points to a secure future for both production lines in Sunderland”, where the Qashqai, Note and LEAF are also built. Production of the Infiniti Q30 is due to begin later this year.
Paul Willcox, chairman of Nissan Europe, said: "This announcement gives security to our Sunderland plant beyond 2020, which the team has earned through many years of hard work and their ability to continually raise the bar on quality."
The Sunderland plant has built more than 500,000 vehicles annually over the past three years and Nissan is the biggest automaker in the history of the UK car industry, the company said.
The Juke will be built on the common platform developed under the Renault-Nissan Alliance, which generated synergies of €3.8 billion (£2.7 billion) during 2014.
Chancellor George Osborne welcomed the investment. "It's fantastic news that Nissan will be building their new car here in Sunderland and securing valuable jobs for thousands of working people in the area," he said.
"Our ambitious plan to build the 'northern powerhouse' means building on the area's strengths - including manufacturing - and this announcement is an important sign of Britain being chosen as a global leader in car production."