LONDON: Vauxhall, the British division of US carmaker General Motors, said on Thursday it would build the new Astra model at its northern England plant in a £125-million ($198 million, 156-million-euro) investment.
"Vauxhall today confirmed that production of its next-generation Astra compact car will be built at the company's manufacturing plant at Ellesmere Port in Cheshire," the group said in an official statement.
"Ellesmere Port will be the lead plant of only two in Europe building the new model." The car will also be built in Poland.
The British government has lobbied to keep the Ellesmere Port car factory open, as General Motors mulled the future of its loss-making European activities.
Vauxhall added Thursday that the move will create an extra 700 jobs at the site in northwest England, with another 3,000 jobs in the supply chain.
Assembly of the new car is expected to start in 2015 and the group aims to produce a minimum of 160,000 vehicles per year.
British Prime Minister David Cameron welcomed the announcement, which came after Vauxhall car workers voted overwhelmingly in favour of a new pay deal.
"This is excellent news for Ellesmere Port and for UK manufacturing," the premier said.
"Once again we have seen the success of the UK automotive industry and the crucial role it plays in growing and rebalancing our economy.
"This has been a real team effort with the government, the company, unions and workers all focused on keeping production in the UK," Cameron added.
"And the workforce at Ellesmere Port should take great pride in their skill, hard work and commitment which has proved vital to ensuring this great result today."
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