Carmaker Toyota has announced plans to manufacture a full hybrid version of its Auris hatchback in the UK.
The new green car will be built at the plant in Burnaston, Derby, using engines produced at Deeside, North Wales.
Business Secretary Lord Mandelson welcomed the car manufacturer's decision and said the Government was committed to its target of "making Britain the best place in the world to develop low carbon vehicles".
He added: "These commitments, backed by the formidable skills of the UK automotive workers enable companies like Toyota to invest with confidence in low carbon car production in the UK. It demonstrates that the UK's car industry is already making the low carbon transition."
Tadashi Arashima, European chief executive of Toyota, said: "With this announcement, Toyota has taken a significant step forward in ensuring that full hybrids become more accessible to a wider range of customers. Such efforts are crucial if we are to see more low-carbon vehicles on European roads."
He continued that the decision "reflects both our confidence in the quality and commitment of the Toyota UK workforce and the strength of our long-standing partnership with the UK Government".
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