Nissan electric car to boost jobs in Sunderland

Nissan has announced plans to build new zero emissions electric car, the Nissan Leaf, in Sunderland

Press association
The Guardian, Thursday 18 March 2010
Nissan announced today it will build its new electric car, the Nissan Leaf, in Sunderland. Production will begin in 2013 and forms part of a £420m investment in electric cars by the Japanese firm.
The manufacturer said the Leaf would be the world's first mass-produced zero-emission car, and around 50,000 a year will be made in Sunderland. The investment will be supported by a £20.7m government grant and a proposed finance package from the European Investment Bank of up to £197.3m.
Sunderland had been tipped as favourite for European production of the Leaf since the Nissan sited its electric car battery plant nearby.
Founded in 1984, Nissan's Sunderland factory employs around 4,000 people and built its five-millionth vehicle in June 2008.
The business secretary, Peter Mandelson, said: "This investment is a fantastic vote of confidence in the Sunderland plant and its excellent workforce."
Nissan's Andy Palmer added: "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."
The news comes amid fears that the recession will force Britain's manufacturers to shift production to cheaper plants overseas. Concerns were heightened after Manganese Bronze, the black-cab manufacturer, agreed to sell a majority stake to the Chinese Geely group and move more of its production to China.
Manganese Bronze, which assembles the TX4 cab – used widely in London and nationwide – at its factory in Coventry, said it had suffered a 30% collapse in sales since the start of the recession, provoking a slump in profits.
Chief executive John Russell said many cab owners had spent the past two years holding back from upgrading their vehicles. "This is a bit of a turning point for us," Russell said after the group posted a pretax loss for 2009 of £7.3m.
He said the company was considering offering Geely shares at 70p to give the Chinese group a controlling stake; shares in Manganese Bronze have been trading at about 85p since the end of January.
Russell also said plans to source bodies and chassis for the TX4 from Shanghai rather than the Coventry area, where its chief supplier is due to close.
Analysts at Collins Stewart suggested Geely was coming to the rescue of Manganese Bronze, which has struggled with recalls and falling market share. Geely is expected to inject £14m of cash and reduce MB's dependency on loans.