Nissan will build its new compact car at its factory in Sunderland, creating
2,000 jobs and providing a major boost to one of the regions hardest hit by recession and spending cuts, the company says.
The business secretary, Vince Cable, will confirm at the Geneva Motor Show that the Nissan expansion - which will create 400 jobs at the factory and 1,600 more in the supply chain - was underwritten by £9m from the government’s regional growth fund.
He will say:
“The decision [from Nissan] is another clear vote of confidence in Britain’s manufacturing industry, and vindicates the government’s decision to put support for manufacturing at the core of its economic strategy.”
The move comes as 2,800 workers at the Vauxhall plant in Ellesmere Port, in the Wirral, await the outcome of a review of General Motors’ European operations that could lead to the closure of the factory.
Cable flew to New York last week to persuade executives at GM, which owns Vauxhall, to keep open the plant, which is one of the region’s biggest employers. But the business secretary told the BBC on Monday he had concerns about the factory’s future.
“We have set out a very positive case to them for remaining and indeed expanding their operations in the UK,” he said. “I’m positive, but it is their decision and they haven’t yet made it.”
GM is considering closing at least two factories in Europe, with Ellesmere Port and Bochum, in Germany, understood to be facing the most serious threat. GM is expected to make a decision on Ellesmere Port at the end of the month.
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