Luxury car firm Bentley is to build a new model - its first sports utility vehicle (SUV) - in Crewe, creating an estimated 1,000 jobs.
The company said the development of its fourth model would include an investment of £800m in headquarters and development infrastructure.
The vehicle will be launched globally in 2016. China has become a key market for sales of the luxury marque.
Bentley has not yet released an image of what the car will look like.
A Bentley at Brooklands in 1931 travelling at 120mph during a 500-mile raceBut the company, which is owned by the Volkswagen group, said it would be a "thoroughbred Bentley, true to the brand hallmarks of luxury, performance, quality and craftsmanship".
It said: "The styling will set it apart from any other SUV on the road and will be true to the Bentley design DNA.
"It will be the most luxurious and most powerful SUV in the market."
Bentley was founded after the First World War and scored early successes in motorsport, particularly at Le Mans.
It was later bought by Rolls-Royce, and Volkswagen purchased the firm in 1998.
A price range has not been revealed for the new model - however, early estimates put the car's value at around £150,000.
Prime Minister David Cameron, speaking at the company's Crewe headquarters, said: "This £800m investment and 1,000 new jobs from Bentley is fantastic news for both Crewe and for the UK as a whole.
The car has become a favourite for the wealthy in emerging markets"It is another important milestone in strengthening our economy."
The decision to make the car in Britain further reinforces the country's position as a key vehicle manufacturing location in the competitive global market.
Britain's automotive sector has continued to show strong performance figures amid a languishing status for other areas of the economy.
Mr Cameron added: "One sector that we know is sprinting ahead in the global race is our booming automotive industry.
"One vehicle rolls off the production line somewhere in the UK every 20 seconds and we have just launched the Government's automotive industrial strategy to help continue this success for years to come."
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