Vauxhall's Ellesmere Port car factory will build at least 160,000 Astra vehicles a year in a deal that secures the future of the plant and protects thousands of jobs.
Owner General Motors has confirmed a £125m investment in the plant and said that up to £1bn would be spent in the UK supply chain.
It was feared that Ellesmere could close under a GM restructuring plan.
Business Secretary Vince Cable said that GM have been persuaded that Britain is a "very good place to do business".
On the government role in the deal, he said he personally went to the US to talk to the GM chief executive and chairman, but did not "wave a chequebook" in order to secure the deal.
When asked by Today presenter Sarah Montague whether the fact that Britain is outside the eurozone played a part, he replied that it wasn't a key factor but concedes that Britain "does have an attractive exchange rate at the moment".
On the subject of Greece and the eurozone crisis, Vince Cable believes the UK should not be "panicking or taking an excessively negative view". We need to get risks in perspective, he says, "there is no reason why the financial crisis should spread".
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