VAUXHALL will build its new Astra at its Ellesmere Port plant in Merseyside as part of an £80 million investment.

Executives have decided to assemble the new car at the UK factory, which already makes the current Astra and the Vectra, rather than elsewhere in Europe.

General Motors Chairman and chief executive Rick Wagoner announced the company's plans during a visit to the UK this week to join the celebrations of Vauxhall's centenary celebrations.

Vauxhall managing director Kevin Wale said: 'We are really looking forward to seeing the first new Astra roll off the production line during the early part of next year.'

The move will safeguard up to 2,000 jobs and is a welcome boost for GM's British operations which have been scaled back. Last year, car manufacturing at Vauxhall's plant in Luton ended after nearly 100 years with the last Vectra rolling off the production line.