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Factory awaits news on electric car

Motor giant Nissan is reportedly planning to build its new electric car at its plant in Sunderland.

A spokesman for the Japanese firm would not confirm the speculation but reports suggested an announcement is expected on Thursday.

If it is confirmed that the Nissan Leaf will be built in Sunderland, it would be a massive boost to the economy of the North East of England and would push the region to the forefront of the low-carbon vehicle industry.

Sunderland has been widely seen as the favourite for European production of the Leaf since the announcement last summer that Nissan's electric car battery would be sited next to the present factory.

In an interview this week, Nissan's UK managing director Paul Willcox said he was quite optimistic Sunderland would be chosen and that a decision would be imminent.

"The manufacturing location is still yet to be decided," he told Car Dealer Magazine. "But we're very hopeful it will be Sunderland."

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.

Founded in 1984, Nissan's Sunderland factory employs around 4,000 people and built its five millionth vehicle in June 2008.

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