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.
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Any rain will eventually clear this afternoon, bringing brighter weather behind it.
Public Health Wales are warning visitors to be aware of the infectious diseases associated with livestock this bank holiday weekend
A band of rain pushing in overnight, bringing with it the odd spot of coastal and hill fog, but things should improve by tomorrow.