Ford, which employs 2,300 workers at its Bridgend plant says the new engine will come off the production line in 2014.
Bridgend already produces 2,668 four-cylinder engines each day and staff numbers says Ford are at their highest in the plant's 33-year history.
The £24m worth of investment announced today includes a grant of £12m from the Welsh Government.
The Welsh Government has greatly assisted in maximising the full potential of Ford’s own investment in Bridgend and we are pleased to meet today with the Welsh First Minister and the Business Minister to recognise this successful partnership.
More top news
The heavy showers will ease during the first part of tonight, leaving a dry night with mist in places.
A 1950s pin-up girl from the Vale of Glamorgan has returned to the spot where she won the nation's hearts.
The band play the Liberty Stadium on Saturday night as part of their 'Everything Must Go' 20th anniversary tour.