The car has a top speed of 143mph (230kmph) and is the most powerful version of the 206.

To deal with its increasing production, Peugeot is taking on 700 extra workers.

The Ryton factory already produces the standard range of 206s and the estate model, the 206 SW.

Peugeot will recruit 700 new workers at Ryton

Peugeot is the second biggest car manufacturer in the UK, outstripped only by Nissan's plant in Washington, in north-east England.

Peugeot this year abandoned its traditional summer shutdown to deal with increasing production.

Next year it will manufacture 230,000 cars, up from 200,000 this year.

More than half of these will be exported.

Peugeot claims to be Europe's only car factory producing cars at close to 24 hours a day, seven days a week.

The company has already invested more than £150m in Ryton.