Nissan sparks hundreds of UK jobs

Nissan will announce today (Monday 20th July 2010) that its Sunderland plant is to build batteries for the next generation of zero-emissions electric cars - sparking rumours it will produce a hybrid electric car soon too. The factory was awarded the battery contract ahead of other European Nissan factories.

The announcement comes just after Nissan confirmed it will build the next-generation Micra in India. Almost three quarters of the cars built in the new Chennai plant will be exported to Europe, though there's no indication that the maker is scaling down car production in the UK.

In fact, the £380m battery-making project will create 200 extra jobs in Wearside. Government money will help fund the start-up costs involved, as will funds from the European Investment Bank. Business Secretary Peter Mandleson, who visits the factory today to address its 4,000 workers, will outline plans for a 'green revolution' in the North East region, including a 'low-carbon economic area'. Speculation is rife that Nissan is also set to also announce it will begin production of a hybrid-electric car in Sunderland, safeguarding all 4,000 jobs, though the maker is yet to comment.

Mark Nichol