The model, which has not yet been named, could lead to the creation of 225 jobs at the factory and a further 900 in the supply chain by 2014.
The company’s £127m investment is being supported by £8.2m from the government’s regional growth fund.
It follows the announcement in March that Sunderland will also build the new Invitation model from 2013.
Once production of the two models begins, it is estimated the Sunderland workforce will stand at a record 6,225.
The additional 80,000 hatchback and 100,000 Invitation models will bring the annual output up to more than 550,000 vehicles.
An additional production shift will be implemented allowing both lines to operate around the clock for the first time in the plant’s 26-year history.
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