Nissan announces production of Leaf eco-car in Sunderland

Thursday 18th March 2010

Japanese car manufacturer Nissan has announced the production of the UK's first mass market electric car in Sunderland.

It is hoped the government-backed investment will secure hundreds of jobs in the north-east, where manufacturing has been hit hard by the recession.

The British government has pledged £20.7 million in support to the Nissan investment – of more than £420 million in the electric cars market – and have welcomed plans to create 550 new highly skilled engineering jobs at the firm's Sunderland plant, which already employs 4,100 workers.

Nissan, the UK's largest car producer and exporter, said its zero emission Leaf electric car will be produced from early 2013, and will be the first in a range of forthcoming Nissan electric vehicles (EVs). The firm claims its new model will be the world's most affordable EV, and initially plans to make up to 50,000 of the new Leaf model in the north-eastern plant.

Nissan also said that construction of its advanced lithium-ion battery plant, announced last year, will begin this April. The facility, which will also be located at Sunderland, will have a production capacity of 60,000 units a year and will start manufacturing batteries in 2012 for both Nissan and its Alliance partner Renault.

The news was welcomed this morning by business secretary Lord Mandelson, who said: "This investment is a fantastic vote of confidence in the Sunderland plant and its excellent workforce.

"The automotive sector is of key importance to the UK.

"Today's news from Nissan, with support from government, shows that by working together we can achieve our aim of making the UK a world-leader in ultra-low carbon vehicles."

Andy Palmer, senior vice president responsible for Nissan's global electric vehicle strategy, said: "Thanks to the UK's firm commitment to a low carbon future in terms of infrastructure, customer incentives and educational programmes, Nissan Leaf will be built at Sunderland, making the UK the third country in the world to produce this revolutionary car."

Earlier today the government also said it is to support Ford's £1.5 billion investment in creating a new generation of environmentally friendly engines, pledging to provide £380 million in loan guarantees towards six Ford projects through its Automotive Assistance Programme (AAP).

The Ford plans hope to safeguard around 2,800 highly skilled jobs in the UK at its manufacturing plants in Dagenham, Southampton and Bridgend in south Wales as well as its research and development centre at Dunton in Essex. ADNFCR-1783-ID-19675845-ADNFCR

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