Nissan: Sunderland investment 'exciting' but warning over reliance
News of a £2bn investment into Sunderland's Nissan plant has been described as a «huge vote of confidence» in the city.
But a think tank has warned against it becoming too reliant on the automotive sector.
It comes as Nissan announced plans to build three electric car models at its Sunderland factory.
The scheme could help preserve at least 6,000 jobs directly, and thousands more across the UK.
It will see the firm build electric Qashqai and Juke models at the plant, alongside the next generation of the electric Leaf, which is already produced there.
A major new battery plant known as a gigafactory will also be needed, Nissan said.
Prime Minister Rishi Sunak, who visited the site on Friday, said the investment was «a massive vote of confidence in the UK's automotive industry».
«This venture will no doubt secure Sunderland's future as the UK's Silicon Valley for electric vehicle innovation and manufacturing,» he added.
Ian Reeve, Look North business correspondent
Nissan always had plans to build the replacements for its diesel and petrol models of the Qashqai and the Juke in the North East.
What caused some uncertainty was the intimation from Nissan earlier in the year that those plans could be scrapped because of high energy costs.
As ever, it said it was looking to the government for cash help to ensure the investment was made.
The government has duly obliged.
And yet building the two models anywhere else would make little sense.
Sunderland gives access to the important European market.
The plant is now the only European manufacturing facility, after a Barcelona factory was repurposed.
And Sunderland already makes hybrid models of both the Qashqai and the Juke — cars that run on both petrol and battery power.
This announcement will take Nissan a stage further in its aim to make only electric vehicles by the end of the decade.
But the question 'if not built at Sunderland, where?' should still be asked.
Nissan president and CEO Makoto Uchida said the plans put the Sunderland plant at the «heart» of their «vision», driving them «towards an all-electric future for Nissan in Europe».
Adam Pennick, vice president for manufacturing at Nissan UK, said some 2,000