Nissan is to create "hundreds of jobs" in Sunderland with the production of a small version of the Infiniti model, a luxury car.
The company has invested £250m in its Sunderland plant. Vince Cable visited the plant on Wednesday:
"Today's news is a strong endorsement of the quality of Britain's car industry, which is creating jobs, taking on apprentices and contributing to building a stronger economy," he told the BBC.
"The auto sector is living up to being one of the great success stories of our industrial strategy and a testimony to government and private sector working together in close partnership."
The company has always made this model in Japan, but a strong yen has casued profits to fall, and is predicted to become stronger under the country's next prime minister, Shinzo Abe. In response, Nissan is moving car production away from the country, to the US and China, as well as to the UK.