Peugeot is to create 700 new jobs at its UK car plant at Ryton, near Coventry - increasing the workforce to about 3700.

The move comes as the French carmaker bids to increase production of its 206 hatchback and new 206 SW. Workers have voted to create a fourth shift to meet demand for an extra 250,000 vehicles in 2003 - up by almost 40,000 cars on 2001.

Peugeot, the second biggest car manufacturer in the UK after Nissan's Sunderland plant, has invested over £150m in the plant, which made a profit of £104m during the past year. More 206s are made in the UK than any other car, with more than 600,000 produced at Ryton since 1998.