The Smart Roadster will get the Gordon Murray magic - and a new name.
Starting next year, Project Kimber is to build 8 000 a year of the Smart model in a south Wales location yet to be announced.
Production is hoped to commence next year and the model will be marketed under the AC brand.
Murray, formerly with McLaren Cars, and best known for designing race-winning McLaren racers as well as engineering the F1 road car and the Mercedes-Benz SLR Mclaren, will oversee the work of a team headed by Coventry-based Visioneering's John Piper, formerly of Williams Grand Prix, Benetton and Reynard.
John Piper, as project chief designer, led the Visioneering team which supplied the engineering capabilities to JCB for the Dieselmax car which last month set a new diesel land speed record.