Ford is investing £70 million in its Bridgend engine plant to produce new low CO2-emitting 1.6-litre petrol engines.
The low emission engines will go into production within two years and go on sale globally carrying the name EcoBoost.
They will feature turbocharging and direct-injection technology, and are expected to provide up to 20% better fuel economy, 15% lower CO2 emissions and good driving performance.
More than 2000 people are employed at the Bridgend plant, which has received £315 million in investment over the past five years. The extra funding will also help increase production capacity to a million engines a year.
The investment includes £13.4 million of Welsh Assembly Government money.
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