Car industry boost as Nissan chooses UK to build new Qashqai

Britain's car industry was given a fresh boost yesterday as Nissan unveiled plans to build the next version of its popular Qashqai model in a move that will help safeguard thousands of jobs.

The Japanese car giant said the decision represented an investment of 192 million and was a "major endorsement" of the quality of British-made products and of its factories and workers.

The group's hi-tech Sunderland plant has been building the Qashqai SUV for more than four years and is due to produce its millionth model this month. Some 80 per cent of production is exported.

The new design will be created in London, before being finalised at Nissan's technical facility in Cranfield, Bedfordshire. It will then be built at the Tyne and Wear factory, where the Note and Juke models are also produced.

Nissan chief executive Carlos Ghosn made the announcement at a meeting with the Prime Minister in Downing Street, saying: "The UK has been a cornerstone of Nissan manufacturing since 1986, with the Sunderland plant setting important benchmarks for quality and efficiency in Europe and around the world.

"It's the home of the Qashqai, one of Nissan's biggest product successes, and, as Nissan's leadership in sustainable transportation grows, the plant will become one of the pillars of our zero-emission manufacturing."

Ghosn said the investment would help safeguard some 6,000 jobs, both directly and in the supply chain.

The government welcomed the announcement as it fits with its strategy of trying to rebalance the economy towards manufacturing, which accounts for less than 15 per cent of GDP output.

Although the car industry in Britain is now largely foreign owned, with companies including Nissan, Toyota and BMW-owned Mini operating plants, it still employs more than 700,000 people and generates some 25 billion of exports.

Jaguar Land Rover, which is owned by Indian conglomerate Tata, last month announced a multi-billion pound investment in its UK sites, while US giant General Motors recently said it would make its next-generation Vivaro van at Vauxhall's factory in Luton.

Nissan said its current Qashqai production line in Sunderland has been running around the clock for more than a year to meet global demand, producing an average of 1,200 Qashqais per day. List prices for the model start at just over 16,000. John Cridland, CBI director-general, said: "This major investment from Nissan is great news for the UK economy.

"Nissan's choice to build its Qashqai model here is a testament to the excellence of British manufacturing and the skills and technical expertise of the workforce in this country."