Project Kimber, the consortium that bought the rights to the Smart Roadster and Roadster-Coupé in February, has announced that it is to build the car in South Wales.
While talks are still on-going, the Welsh Assembly has made a conditional offer of regional aid totalling £10m. If the plans go ahead, production will start in the middle of next year, with between 150 and 600 jobs being created, according to Professor Garel Rhys, motoring guru at Cardiff University.
The car will be a lightly modified version of the Roadster and Roadster-Coupé, with a production target of 8000 cars a year.
Professor Rhys described the decision by Project Kimber as a very significant development not just for Wales, but for the UK as a whole. 'It demonstrates that the UK and Wales are still efficient locations for the motor industry. This particular investment is based upon a proven product originally developed and made by one of the world's foremost automotive companies.'