Motor giant Nissan is to build its new electric car in Britain, it was announced last night.
Production of the Nissan Leaf will begin in Sunderland in 2013 and forms part of a €470 million
investment in electric cars by the Japanese firm.
The manufacturer said the Leaf would be the world's first affordable mass-produced zero emission car and about 50,000 a year will roll off the Sunderland production line. The investment will be supported by a €23 million grant from the British government and a proposed finance package from the European Investment Bank of up to €220 million.
Nissan has already announced production of the all-electric Leaf hatchback in Japan and the United States, with the car due to go on sale at the end of this year.
The company has not specified how much the car will cost, saying only that it will be competitive with similar-sized cars with conventional engines.
The announcement was welcomed by Business Secretary Lord Mandelson.
"This investment is a fantastic vote of confidence in the Sunderland plant and its excellent workforce," he said. "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.
"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 at Nissan, added: "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 similarcar in its class - minus the tailpipe emissions.
"Thanks to the UK's firm commitment to a low carbon future in terms of infrastructure, customer incentives and educational programmes, Nissan Leaf will be built at Sunderland, making the UK the third country in the world to produce this revolutionary car."
Founded in 1984, Nissan's Sunderland factory employs about 4,000 people and built its five millionth vehicle in June 2008.