Vauxhall said it planned to take on 550 new employees at its manufacturing sites in Ellesmere Port and Luton, the first significant new-hire programme for a decade.
Around 300 new jobs will be created at the Ellesmere Port plant in Cheshire. The plant currently operates on two shifts but as sales volumes build, more employees are required to cope with increased output at the facility. The new jobs will be phased in over the first quarter of 2015.
In 2012, Ellesmere Port won the contract to build the next generation, all-new Astra. Production of this model begins towards the end of 2015. The agreement runs into the next decade and secured a £125 million investment.
Meanwhile, a second shift is to be added to Vauxhall's Luton plant in January 2015, creating around 250 new jobs. The Luton facility builds the recently launched Vivaro van and will be taking on these new employees to increase output next year.
"This is great news for Vauxhall and for British manufacturing," said Tim Tozer, Vauxhall's chairman and managing director. "Both of our UK manufacturing plants have won long contracts with all-new product and as the business strengthens, we now need to take on more people to build these exciting new Vauxhalls."
More than 30 manufacturers build over 70 vehicle models in the UK supported by around 2,500 component providers and some of the world's most skilled engineers, according to the Society of Motor Manufacturers and Traders.
It added: "With more than 160,000 people employed directly in manufacturing and in excess of 770,000 across the wider automotive industry, it accounts for 10% of total UK export of goods and invests £1.9 billion each year in automotive R&D."