On Tuesday, Bentley played down the likelihood that production of the SUV could ever have been moved overseas, arguing that building the complete Bentley abroad – which would have been a first for Bentley – was never a possibility.
However, the Government heralded the moment as a victory for Britain, with the Prime Minister present for the announcement at the Bentley headquarters.
The announcement comes as rival luxury car maker Rolls-Royce, the British brand owned by Germany’s BMW, also increases investment in UK production amid record sales.
“It is another important milestone in strengthening our economy,” Mr Cameron said. “One sector that we know is sprinting ahead in the global race is our booming automotive industry.
“I am delighted that Bentley will be building their new vehicle here, not only creating 1,000 jobs but safeguarding many more, as well as increasing training opportunities for highly skilled apprentices.”
The UK produced 1.58m vehicles last year, and is the fourth largest vehicle producer in Europe. A vehicle rolls off a production line somewhere in the UK every 20 seconds.
Earlier this month, the booming car industry was given a £1bn boost with Government and business funding a research centre to develop low-carbon engine technology. The flagship investment will be made over the next 10 years as part of the Government’s automotive strategy, unveiled within the wider industrial strategy for the UK.
Bentley itself currently exports more than four out of every five cars it makes in the UK to the rest of the world, with its latest model expected to appeal to wealthy overseas buyers. The SUV, yet to be named, is expected to be the most expensive on the market when it goes on sale in 2016.
By producing this fourth model line, Bentley is following a path trodden by Porsche, also owned by Volkswagen. The Porsche Cayenne SUV is now the bestseller for that brand.
Mr Schreiber said: “Bentley is increasingly successful and this new fourth model line will leverage the success of the global SUV market.
“The support of everyone involved with the company has been fundamental to this decision, which will ensure sustainable growth for the company.”
Bentley says they hope to shift at least 3000 of the SUVs each year, with the SUV being available to drive in 2016.
The company does most of its sales in the USA and China, the later being seen a growing market for many luxury maker