The money will be spent on new production facilities to manufacture plastic car parts and metal castings for engines.

A Honda spokesman said it had no immediate plans to create more jobs as a result of the investment.

On Friday the two millionth car is expected to roll off the production line from its Swindon factory.

The company came to Swindon 22 years ago and now employs more than 4,000 workers at its factory at South Marston.

The cash means the factory able to make diesel engines rather than importing them from Japan.

It will also be spent on the plant's bumper, welding and paint operations.