Jaguar Land Rover (JLR) is to create 1,700 new jobs in Solihull, West Midlands.
The company is investing £1.5 billion in new aluminium chassis technology to underpin its future cars, including a new medium-sized sports car due for release in 2015.
Chief Executive Ralf Speth said:
"Jaguar Land Rover is a business driven by design, technology and innovation and this investment and level of job creation is yet further evidence of our commitment to advancing the capability of the UK automotive sector and its supply chain."
Manufacturing jobs need to be at the forefront of the UK recovery as the country tries to earn more through exporting.
JLR has been highly successful in recent years, with its Range Rover brand expanding quickly through new models like the Evoque.
This expansion has been supported by an increase in the company's employee count: the latest announcement means JLR has created nearly 11,000 jobs in the last three years.
More jobs are also being created in suppliers who make components for the cars.
To find out more go to the Jaguar Land Rover careers site.