VAUXHALL has announced the next generation of the Astra will be built at its Ellesmere Port factory in Merseyside, paving the way for thousands of new jobs
The news is the latest boost for the UK car industry after Nissan recently announced it would build its new hatchback at its Sunderland plant.
Vauxhall owner General Motors has said it is investing up to £125million in the plant, which will build at least 160,000 of the vehicles every year.
About 3,700 new jobs will be created as a result - 700 of which will be on the site itself, with a further 3,000 within the supply chain.
Additionally, 2,100 jobs at the plant will be saved as a third shift is created to keep production running round the clock.
Production on the new model is expected to begin by 2015.
Rumours had suggested that GM was planning on cutting investment in its Ellesmere Port plant, but the new announcement allays these fears and guarantees the future of the facility until at least the next decade.
Business secretary Vince Cable, said that the huge effort made by management and unions to secure the future of the site played an important role in GM's decision.
"This is a positive step. But we are not there yet. Important decisions lie ahead and I strongly encourage the workforce to support the recommendations of the union leadership and to see Ellesmere Port continuing to make great quality cars beyond the turn of the decade," Mr Cable said.
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