Honda is creating 500 new jobs to meet a forecasted increase in production at its UK factory in Swindon.
The move came as full production resumed at the Swindon plant following supply problems, with the company launching its new Civic.
Swindon's Car Plant 2 will return to a two-shift operation in the late spring of next year, creating a need for the new jobs in addition to the current 3,000 workforce.
Honda Motor Europe president Manabu Nishimae said at the Swindon plant: "The last three years have been extremely difficult for all of Honda's European operations.
"We have faced many challenges beginning with the economic downturn through to the two natural disasters in Japan and Thailand.
"Throughout this period, associates have remained committed and I am extremely proud of how they have responded to these challenges.
"We will build upon our new-found strength and remain confident of our ability to achieve and succeed in the future."
Prime Minister David Cameron said: "This is great news and a tremendous boost to the workforce, the car industry and UK manufacturing.
"Honda is contributing to a real renaissance in the UK automotive industry, we have a highly skilled workforce and we continue to be at the forefront of new technology and development.
"Its success is of great importance to our economy and we are committed to do all that we can to see this vital industry grow and thrive."