Car giant Nissan is investing £100 million in its UK factory on building a new generation of one of its models, securing thousands of jobs.
The Japanese firm announced that the Sunderland plant will build the new Juke, securing 34,000 jobs at the site and in suppliers beyond 2020.
Nissan said the move was aimed at keeping the company as the "undisputed leader" in the so-called crossover vehicle market.
The Sunderland factory, which employs 6,700 workers, produces the Qashqai, Note and Juke models and the electric Leaf.
Nissan Europe Chairman, Paul Willcox said: "The Juke's unique design is one of the reasons Nissan is now the undisputed crossover leader, underpinning five consecutive years of sales growth in Europe.
"With the next generation Juke now confirmed for future production, customers can be assured that Nissan is going to remain the benchmark in the crossover segment for many years to come.
"This announcement also 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."
Nissan's European design team in Paddington, London, and European Engineering Headquarters in Cranfield, Bedfordshire, will be instrumental in the development of the new model.
Chancellor George Osborne said the announcement was "fantastic news", adding: "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."
The Juke is Nissan's second best selling model in Europe.