Toyota will invest more than £100m in UK operations, creating up to 1,500 jobs in the next two years at its factory in Burnaston, Derbyshire.

The first phase of recruitment will see 500 new jobs in the middle of 2012.

Didier Leroy, Toyota president and chief executive for Europe says: “We know that together we can build vehicles that deliver the highest standards of quality, reliability and environmental efficiency.

“Going beyond our own operations, there will also be benefits for our local communities and regions, safeguarding thousands of jobs in the UK supply chain.”

Prime Minister David Cameron says: “This investment and the jobs it will create provide a terrific boost not just to the local economy but to the whole country, and is a tribute to the great skill, hard work and sheer professionalism shown by the Toyota workforce.

“Toyota’s commitment to the UK shows the growing strength of the UK car industry - it is our great British success story.