The announcement today by the chairman of Atlanta-based Carbon Motors Corp. drew cheers from the large crowd gathered inside the former Visteon plant in Connersville, Ind.
A site in Graniteville had been among those being considered by the company.
The company says it intends to invest $350 million in the plant and potentially hire 1,550 workers.
Carbon Motors' decision had been eagerly awaited among Connersville residents as the company considered sites in several states, including South Carolina and Georgia.
The Connersville area had a 15.9 percent unemployment rate in June. Michigan-based Visteon stopped production in 2007 at its factory, which once employed more than 3,000 people.