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
A look at how the votes will be counted and when the results of the Scottish referendum will be announced.
September is about to get a little soggy for the south overnight tonight, as the Met office issue a yellow warning to "Be Aware"!
Central and northern areas could be forgiven for wondering what all the fuss is about, but rain edges into the south today!