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Nissan to build electric car in UK

Motor giant Nissan has confirmed plans to build its new electric car in the UK.

Production of the Nissan Leaf at the firm's Sunderland plant will begin in 2013 and forms part of a £420 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 around 50,000 a year will role off the Sunderland production line.

The investment will be supported by a £20.7 million Government grant and a proposed finance package from the European Investment Bank of up to 220 million euros (£197.3 million).

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.

"This 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 similar car in its class - minus the tailpipe emissions."

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