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
Schools in Newport have started using robots to help pupils develop their ICT skills as part of a drive to teach more people how to code.
Were you fooled? We've compiled a round-up of our favourite April Fools jokes from across Wales.
The latest poll focussed attention on how people intend to vote for Westminster but it also asked about next year's Assembly election.