The project will deliver a huge boost to the British economy, creating 2,000 jobs
Japanese car giant Nissan has announced plans to build a new model at its Sunderland factory under a £125 million investment programme, creating 2,000 new jobs in the UK.
The workforce at Sunderland will increase to a record 6,000, while the new jobs will be created at the site as well as among firms supplying the factory.
The car will be built at the plant from 2013 in a project supported by a £9.3 million grant from the Government.
Business Secretary Vince Cable hailed the news as a "clear vote of confidence" in British manufacturing industry. He said: "It is fantastic news that Nissan will be building the new model in Sunderland. The investment is a boost for jobs at Nissan's plant as well as the wider supply chain.
"This latest announcement highlights the UK's track record of attracting inward investment. Global vehicle manufacturers are beating a path to the UK's door. They recognise that the Government values the automotive sector."
Nissan is one of several businesses in the automotive sector to receive conditional offers from the £2.4 billion Regional Growth Fund (RGF), which aims to support projects that will create jobs in areas of England dependent on the public sector and which are supported by private investment.
The North East Chamber of Commerce's director of membership and policy, Andrew Sugden, said: "The importance of Nissan to the regional economy cannot be under-estimated. For every person employed by the company another four are supported in Nissan's supply chain and with employment at the plant reaching a record high this is another welcome achievement."