Jobs boost as Nissan to build new models in UK

Nissan says it will build two new car models in Sunderland, securing thousands of jobs and providing a major boost to the post-Brexit UK economy.

Theresa May welcomed the Japanese company's decision saying it was a "vote of confidence" that "shows Britain is open for business".

There had been fears the manufacturer would put the brakes on further investment in the UK because of the EU referendum.

Nissan has confirmed it will build its next-generation Qashqai and X-Trail models at Britain's biggest car plant.

The firm said the increased investment will secure more than 7,000 jobs at the site.

Chief (Taiwan OTC: 3345.TWO - news) executive Carlos Ghosn said Government "support and assurances" helped the firm decide to make the models in Sunderland.

He added: "Our employees there continue to make the plant a globally competitive powerhouse, producing high-quality, high-value products every day."

"I welcome British Prime Minister Theresa May's commitment to the automotive industry in Britain and to the development of an overall industrial strategy."

Reacting to Nissan's decision, Mrs May said: "This is fantastic news for the UK.

"It is a recognition that the Government is committed to creating and supporting the right conditions for the automotive industry so it continues to grow now and in the future.

"This vote of confidence shows Britain is open for business and that we remain an outward-looking, world-leading nation."

The site employs 7,000 workers and has built one in three of Britain's cars last year. It also supports 28,000 more jobs in the supply chain.

In September, Mr Ghosn warned that he could scrap new investment without a guarantee of compensation for costs related to any new tariffs resulting from Brexit.

However, earlier this month, following talks with the Prime Minister , Mr Ghosn said the commitment by the Government that Sunderland would remain competitive, gave Nissan the confidence to go ahead.

Lib Dem leader Tim Farron said it was "utterly ridiculous" the UK was having to give "special assurances" to key manufacturers to deal with the "Brexit fallout her Government is creating".

Unite union assistant general secretary Tony Burke said: "Nissan's decision is a massive vote of confidence in the skills and expertise of a world-class workforce and testament to their hard work."

The car industry has raised fears that while a cheaper pound may make their goods more attractive to foreign buyers, an exit from the single market and the prospect of trade tariffs will add to their costs.