18/03/2010

UK To Build Electric 'Leaf' Car

Nissan's plans to produce its electric Leaf car in Sunderland have been welcomed by the Government.

The car manufacturer has been awarded over £20m in grants from the Government to build the new plant.

Nissan said the proposals represent an overall £420m investment in UK operations.

It plans to make up to 50,000 vehicles and 60,000 batteries a year which will help to safeguard and create over 550 highly skilled jobs at the Sunderland plant.

Business Secretary Lord Mandelson said the move is a "fantastic vote of confidence" in the company's British workforce.

"The automotive sector is of key importance to the UK. It supports R&D, technological innovation, skills and a supply chain that's a mainstay of the wider manufacturing sector," he said.

"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: "The world is at the dawn of a new era in automotive transport. Nissan LEAF, which will go on sale later this year, is a five-seater hatchback that offers the same space, practicality and performance of a similar car in its class - minus the tailpipe emissions."

Meanwhile, the Government has pledged support for Ford's £1.5bn investment in creating a new generation of environmentally friendly engines.

The Government will provide £380m in loan guarantees towards six Ford projects through its Automotive Assistance Programme (AAP).

Ford's plans will safeguard around 2800 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.

(PR/GK)

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