New Nissan model to be built in UK

UK Nissan car workers are celebrating after the Japanese motor giant ended months of speculation by deciding to build a new model in Sunderland.

Union leaders said the move proved that other car firms such as Vauxhall and Ford were wrong to cut back production in the UK.

The formal announcement will be made at 10 Downing Street by Nissan's president, Carlos Ghosn, who is flying to the UK from Tokyo.

He will be greeted by the British Prime Minister, who will welcome news that the new Micra model will be built in Sunderland.

The decision had been finely balanced for weeks, with initial expectations that the work would go to a plant near Paris operated by Renault, which acquired 36% of Nissan last year.

But the Government lobbied furiously for Sunderland to build the car, offering a £40m grant which the European Commission approved last week.

Ken Jackson, General Secretary of the Amalgamated Engineering and Electrical Union, said the decision is a "real shot in the arm".

He added: "This is great news for the entire UK car industry. It demonstrates that other car companies were wrong to pull out of Britain."

Speculation will now centre on whether the British Government gave any indication to Nissan about the timing of Britain's entry into the euro.

The company had been thought to favour building the new Micra in France after warning of the difficulties of manufacturing outside the euro zone.