The £800m development of Bentley’s fourth product line, a luxury SUV, will support the creation of 1,000 jobs at Bentley’s factory in Crewe.
The vehicle is aimed at becoming the "most luxurious and most powerful SUV in the market", Bentley said in a statement.
Visiting the Crewe factory, UK Prime Minister David Cameron declared the announcement of the new model great news for British economy.
"One sector that we know is sprinting ahead in the global race is our booming automotive industry,” he said. “One vehicle rolls off a production line somewhere in the UK every 20 seconds and we have just launched the government's Automotive Industrial Strategy to help continue this success for years to come.”
He also said he believed that the new product will present a good opportunity for Bentley to expand its apprenticeship and trainee opportunities.
Bentley, a member of the Volkswagen group since 1998, will introduce its SUV – the company’s first – in 2016.
"The Volkswagen Group believes in the UK as a competitive location for industrial production. Bentley fans all around the world are looking forward to the brand's first SUV. Together we will make this new Bentley another true Bentley – powerful, exclusive and successful," said Martin Winterkorn, chairman of the board of the Volkswagen Group.
Bentley, founded in 1919, is one of the world’s foremost luxury car manufacturers. Currently, on average more than four out of five Bentley cars manufactured in the UK are exported and sold outside the UK.