The next Nissan Qashqai will be designed, engineered and built in the UK, the company has announced.
Nissan says the move will safeguard 6000 jobs at its facilities in Sunderland, Bedfordshire and London and through its UK supply chain.
The new crossover will be styled at Nissan's European Design Centre in Paddington, London. After that the project will be taken over by engineers at its Technical Centre in Cranfield, Bedfordshire.
The completed car will be built at Nissan's factory in Sunderland. The company hasn't revealed when production of the new Qashqai will begin.
Nissan CEO Carlos Ghosn said: 'The UK has been a cornerstone of Nissan manufacturing since 1986, with the Sunderland plant setting important benchmarks for quality and efficiency in Europe and around the world.
'It's the home of the Qashqai, one of Nissan's biggest product successes. As Nissan's leadership in sustainable transportation grows, the plant will become one of the pillars of our zero-emission manufacturing.'
Prime Minister David Cameron said: 'This investment from Nissan is fantastic news and a great demonstration of the strength and vitality of the UK car industry. That future manufacturing and R&D has been secured is a tribute to the skill, expertise and hard work of Nissan's UK workforce.
'I have seen first hand the tremendous work at the Nissan Sunderland plant; this is a great day for them, the whole of the North East and for UK manufacturing too.'
In addition, Nissan is also investing 420 million in its Sunderland plant for the production of the Leaf electric car from 2013 and in a new stand-alone facility to make lithium-ion batteries for both Renault and Nissan vehicles from 2012.