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Nissan to create hundreds of jobs Nissan to create hundreds of jobs
(40 minutes later)
Nissan has announced that its Wearside factory will start producing batteries for electric cars, which is expected to create 350 new jobs.Nissan has announced that its Wearside factory will start producing batteries for electric cars, which is expected to create 350 new jobs.
Prime Minister Gordon Brown said that Nissan's £200m investment "was great news for the local economy".Prime Minister Gordon Brown said that Nissan's £200m investment "was great news for the local economy".
The plant, near Sunderland, has beaten off competition from other Nissan factories in Europe for the investment.The plant, near Sunderland, has beaten off competition from other Nissan factories in Europe for the investment.
The move could pave the way for the production of electric vehicles at the North East plant in the near future.The move could pave the way for the production of electric vehicles at the North East plant in the near future.
"Sunderland could now be a strong contender to produce electric vehicles for Nissan in Europe, and we will continue to work with Nissan to ensure this happens," the prime minister said."Sunderland could now be a strong contender to produce electric vehicles for Nissan in Europe, and we will continue to work with Nissan to ensure this happens," the prime minister said.
The North East has distinguished itself as the first specialised region for ultra-low-carbon vehicles Lord Mandelson The future of electric motoring Plan to boost electric car salesThe North East has distinguished itself as the first specialised region for ultra-low-carbon vehicles Lord Mandelson The future of electric motoring Plan to boost electric car sales
Mr Brown visited the Sunderland factory along with Business Secretary Lord Mandelson.Mr Brown visited the Sunderland factory along with Business Secretary Lord Mandelson.
The BBC's Fiona Trott said that it was not clear whether the deal secured the jobs of the 4,000 people employed at the existing Nissan plant. She said 1,200 jobs had been cut earlier this year.The BBC's Fiona Trott said that it was not clear whether the deal secured the jobs of the 4,000 people employed at the existing Nissan plant. She said 1,200 jobs had been cut earlier this year.
The TUC welcomed the announcement.The TUC welcomed the announcement.
'Low carbon area''Low carbon area'
Mr Mandelson said a "low-carbon economic area" would be established in the North East.Mr Mandelson said a "low-carbon economic area" would be established in the North East.
As part of the project, 750 charging points would be installed across the region and a training centre specialising in the manufacture and maintenance of low-carbon vehicles would be set up.As part of the project, 750 charging points would be installed across the region and a training centre specialising in the manufacture and maintenance of low-carbon vehicles would be set up.
It does mean that Nissan is more likely to manufacture electric vehicles in the UK than elsewhere in Europe Michael Steventon, KPMG
Nissan's £200m investment will be spread over five years and the new plant, which will make lithium-ion batteries, will also create and secure additional jobs in the related supply chain.Nissan's £200m investment will be spread over five years and the new plant, which will make lithium-ion batteries, will also create and secure additional jobs in the related supply chain.
Nissan also announced it was setting up another battery manufacturing plant in Portugal.Nissan also announced it was setting up another battery manufacturing plant in Portugal.
'Vote of confidence''Vote of confidence'
From Fiona Trott, BBC correspondent at Nissan, Sunderland.
The announcement has allayed the fears of some of the workers here.
But there is also a lot of ambiguity too because the company has talked about creating 350 brand new jobs, but it hasn't been able to say whether or not the existing jobs here have been secured.
Remember that 1,200 jobs were cut at the factory here in January.
But when you speak to the staff most of them say they think that it is good news.
They say that at least people have been coming here and talking about the long-term future of Nissan and news like that is better than no news at all.
Michael Steventon, head of automotive research at consultants KPMG, said that the announcement was a vote of confidence in the Nissan workforce in Sunderland.Michael Steventon, head of automotive research at consultants KPMG, said that the announcement was a vote of confidence in the Nissan workforce in Sunderland.
"Batteries are only part of a vehicle but they are an expensive, logistically significant part," he said."Batteries are only part of a vehicle but they are an expensive, logistically significant part," he said.
"It does mean that Nissan is more likely to manufacture electric vehicles in the UK than elsewhere in Europe," he added."It does mean that Nissan is more likely to manufacture electric vehicles in the UK than elsewhere in Europe," he added.
However, he said that if the UK wanted to really capitalise on the move toward hybrid vehicles, more investment in research and development was needed.However, he said that if the UK wanted to really capitalise on the move toward hybrid vehicles, more investment in research and development was needed.
AssistanceAssistance
The government said it was working with Nissan on supporting the investment by offering grants and loan guarantees, including support through its Automotive Assistance Programme.The government said it was working with Nissan on supporting the investment by offering grants and loan guarantees, including support through its Automotive Assistance Programme.
Earlier this year, the government set aside £2.3bn to support the UK's ailing car industry - but nothing has yet been paid out.Earlier this year, the government set aside £2.3bn to support the UK's ailing car industry - but nothing has yet been paid out.
"The North East has distinguished itself as the first specialised region for ultra-low-carbon vehicles," Lord Mandelson said."The North East has distinguished itself as the first specialised region for ultra-low-carbon vehicles," Lord Mandelson said.
"This is good news not just for the North East, but for the whole of the UK, helping to attract foreign investment and securing UK's place as a global leader in hi-tech manufacturing and automotive industries," he added."This is good news not just for the North East, but for the whole of the UK, helping to attract foreign investment and securing UK's place as a global leader in hi-tech manufacturing and automotive industries," he added.
The announcement from Nissan comes only days after its Japanese rival Toyota said it would start manufacturing the new Auris hybrid petrol-electric vehicle at its plant in Burnaston, Derbyshire from mid-2010.The announcement from Nissan comes only days after its Japanese rival Toyota said it would start manufacturing the new Auris hybrid petrol-electric vehicle at its plant in Burnaston, Derbyshire from mid-2010.


Do you work at the Nissan factory or live in Wearside? What is your reaction to Nissan's announcement? Will you be applying for a job there? How will this affect the local economy? Send us your comments using the form below.Do you work at the Nissan factory or live in Wearside? What is your reaction to Nissan's announcement? Will you be applying for a job there? How will this affect the local economy? Send us your comments using the form below.
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