Nissan announces electric car investment

Japanese car giant Nissan today announced plans to create hundreds of new jobs in a £200 million investment to build batteries for electric cars.

Prime Minister Gordon Brown and Business Secretary Lord Mandelson visited the firm's plant in Sunderland, north east England, to hear the news, which gives a big boost to the UK's recession-battered motor industry.

The battery investment makes the Sunderland plant a contender for manufacture of the group's new "greener" electric vehicles.

The Prime Minister said: "Nissan's investment in a new battery plant and its hope to start producing electric vehicles here in Sunderland is great news for the local economy, creating up to 350 direct jobs and creating and safeguarding hundreds more in the associated supply chain.

"This investment is also hugely significant as we embark on Building Britain's Future, our plan for recovery and beyond powered by low carbon, high technology industries, products and services.

"Sunderland could now be a strong contender to produce electric vehicles for Nissan in Europe, and we will continue to work with Nissan to ensure this happens."

The Government said it was working with Nissan on supporting the investment by offering grants and loan guarantees, including support through its Automotive Assistance Programme.

Lord Mandelson said: "The North East has distinguished itself as the first specialised region for ultra-low carbon vehicles. This is good news not just for the North East, but for the whole of the UK, helping to attract foreign investment and securing UK's place as a global leader in hi-tech manufacturing and automotive industries.

"The collaboration between local businesses, universities and colleges will create a hub of expertise to boost innovation and accelerate business growth in this important area of 'green' industry."

The Government announced plans to established a "Low Carbon Economic Area" in the North East, including a training centre which will be the first to specialise in the manufacture and maintenance of ultra-low carbon vehicles.

Ministers are in talks with companies such as the AA about how the centre can help update skills to keep up with the growing use of ultra-low carbon vehicles.

A research and development centre will also be established, serving as a home for research from five local universities.

Over the next two years, 750 charging points will be installed in a range of locations in the North East, including supermarkets, shopping centres, public transport installations, hospitals, universities, public buildings and domestic and business premises. The first points are currently being installed in Newcastle and Gateshead.

Margaret Fay, chairman of development group One North East, welcomed the "visionary" announcement, adding: "It confirms the North East of England's growing role at the forefront of the low-carbon economy and cements the region's position as a leading location for electric vehicle development in Europe.

"The North East's Low Carbon Economic Area will be extremely important for the future of the automotive industry in the region and will enable One North East to attract further investment related to electric vehicles and their infrastructure."

Any Government grants to Nissan will be subject to European Commission approval.

The research and development centre will be the home to research from the Universities of Newcastle, Durham, Sunderland, Northumbria and Teesside, looking at all aspects of low carbon technology, with projects including the understanding of power consumption and charging patterns, the range extension of all-electric and plug-in hybrid vehicles, and energy storage.

Low Carbon Economic Areas were announced as part of the Government's low carbon industrial strategy last week, with the first based in the South West of England, specialising in wave and tidal technology. Further areas are expected to be announced over the next six months.

Nissan also announced plans to manufacture batteries at a plant in Portugal in its alliance with Renault, describing today's announcement as a "first significant step" towards producing batteries for its zero emission mobility programme in Europe.

"The two governments have offered to extend financial assistance and other support to ensure that Nissan locates the proposed plants within their respective countries.

"This recognises the significant contribution that the plants are likely to make to the long term health of both the national and regional economies by being central to the growth of the automotive and associated industries, boosting jobs and the skills sector and pioneering the manufacture and sale of zero emission vehicles in Europe," the firm said.

Nissan senior vice-president for manufacturing, Europe, Trevor Mann, said: "In March Nissan and regional development agency One North East signed a memorandum of understanding committing both partners to explore fully the North East's potential to spearhead the UK's drive towards zero emission mobility.

"Since then, a great deal of work has been going on at both the local and national level to promote and facilitate the introduction of electric vehicles within the region.

"Today's announcement potentially marks another important milestone in establishing low carbon transport as a viable and attractive alternative across the North East and beyond, and reinforces Nissan's commitment to lead the world in the mass marketing of zero emission vehicles."

The announcement was made at Nissan in Sunderland and is seen as a big boost for the long-term future of the plant, which was forced to shed 1,200 jobs in January as it battled to overcome the crisis in the motor industry.

The Prime Minister and Business Secretary Lord Mandelson were taken on a tour of the plant by Trevor Mann, senior vice president for manufacturing, and met workers on the Micra production lines.

Later, Mr Brown told a gathering of workers: "This is a great day for Sunderland, it's a great day for the North East, it's a great day for the United Kingdom.

"And the first thing I want to do is congratulate you, the Nissan workforce.

"You have proved by your productivity, by your excellence, by your quality, that new investment should come here immediately and pave the way for a low-carbon future.

"This product shows that Britain will lead the way in the new, low-carbon jobs of the future."

Mr Brown said the investment in the electric battery factory would "send a message" to Europe and the rest of the world that Britain would lead the way in low-carbon technology.

"The rest of Europe will look to Nissan here in Sunderland for leadership in this new area of technology," he said.

"What we are also doing is making the North East a low-carbon economy with resources now being invested in training, in testing and linking up with universities and encouraging other firms to get involved in low-carbon technology.

"So the message from the North East is, just as you led the way in the transport and industrial revolution, so too you are now leading the way with the low-carbon revolution of the future.

"I know as a country we face challenges. The question often asked of me is 'Where are the jobs of the future going to come?'

"People are answering that question here at Nissan today."

TUC general secretary Brendan Barber said: "This is an excellent initiative. It combines active industrial policy and environmental transformation, pointing the way to the kind of economy we will need to build after the recession.

"The old debate that says that there is only a choice between leaving it to the market or picking winners is now dead and buried."

Dr Neil Bentley, the CBI's director of business environment, said: "This is great news for the North East, the region's car-makers and the many firms involved in the supply chain.

"The UK's automotive sector is among the most efficient in the world, and the North East has the chance to become a major centre of expertise.

"Getting electric and hybrid vehicles off the drawing board and on to the roads will be key to reducing our carbon emissions. The long-term opportunities for UK companies are significant."

Dave Osborne, national officer of the Unite union, said: "This investment programme is very welcome news for the North East.

"Not only is it a vote of confidence in the skills and talents of the workforce at the Nissan plant in Sunderland, it is good news on jobs for a part of the country which has been hit so savagely by this recession.

"Moreover, this investment should position the UK very strongly as a leading European site for Nissan's electric car.

"Harnessing the potential for new technology to reinvigorate the UK car industry is an enormous challenge, which will need Government and the sector to work hand in hand to seize the moment before us.

"We saw today that this can happen to great effect, so we look forward to continued Government support for this vital sector and the jobs and prosperity it can provide."

Edmund King, AA president and Visiting Professor of Transport at Newcastle University, said: "This is great news for the North East.

"The AA is supporting the vision for the North East to become the low-carbon centre of excellence. The North East electric car strategy has the potential to spark a personal transport revolution in UK cities.

"For the vision to work we need infrastructure, incentives, clean electricity and affordable, practical vehicles.

"Drivers want change. In a recent AA/Populus survey of 17,500 members 62% said they would consider buying a more environmentally friendly car.

"The AA will be working with Newcastle University and One North East to help this amazing vision become a reality."