Nissan has announced that it is to build a new model at its plant in the North East Of England, this will secure the jobs of nearly 5,000 workers directly employed by the Japanese car maker.

The car, an addition to the Nissan range, will use the free capacity freed up when production of the current version of the Micra ends in 2010. The new model will be in the same size class as the Nissan Micra. Production of the Micra will switch to India.

The build of the new model required an investment of £55 million and is being subsidised by the UK Government to the tune of £6.2 million.

The Sunderland plant plant produced a record 374,000 cars in it’s last financial year.

Nissan chief executive Carlos Ghosn said: “By delivering on tough commitments, our employees at Sunderland have demonstrated our plant can be a globally competitive centre for the production of high-value products.”

A Happy Union.

The Unite union said the decision would safeguard over 1,200 jobs “at a time when Nissan will move production of the Micra to India”.

“This proves once again that given the opportunity the UK can remain a strong manufacturing base for the world’s top producers.”

Chief executive James Ramsbotham stated: “This is excellent news for manufacturing in the North East and Nissan’s success is testament to the skill, flexibility and versatility of its workforce and the wider supply chain.

“The fact that Nissan has retained such a competitive edge in an increasingly competitive industry demonstrates that manufacturing in Britain can be cost-effective while delivering a quality product that is superior to cheaper alternatives manufactured abroad.”

Car Sales Increase Dramatically.

Nissan has seen a dramatic increase in sales, up 85% on last year. A lot of these sales have come from the highly succesful Nissan Qashqai. Demand for this car is far outstripping supply. A lot of these vehicles are being sourced through car leasing schemes.

The Nissan car range is now one of the most popular on Britains roads.

The Van Market.

Nissan van sales are also on the rise in the UK. Nissan has finally started to attackt the commercial vehicle sector. Working in partnership with Renault and Vauxhall the Nissan range is moving forward. Once again it is this new approach of Nissan UK to finally get involved in the van leasing market that is making the difference to Nissan vans sales.