The Government has confirmed that Nissan will receive a much-needed £20 million grant, much to the delight of the Japanese carmaker.
The grant was signed off earlier this year by former Business Secretary Lord Mandelson, but was one of the business loans that many feared may be scrapped or deferred under the new coalition Governments proposed spending cuts.
However, Prime Minister David Cameron yesterday told the House of Commons that the funding would be going ahead.
The grant will go towards the UK production of the Nissan Leaf electric car in Sunderland, which will help safeguard more than 2000 jobs across the supply chain in the north east.
Alan Hall, region director for manufacturers organisation EEF, said: "There was a real concern the new coalition Government would not fulfil its promise on this. The fact they have is not only brilliant news for Nissan but for North-east manufacturing."
"There is an extensive supply chain on Teesside and the good effects of this will filter down through it. We already have evidence of North-east companies opening up to a worldwide market for electric cars ."
He added: "Nissans battery plant and electric car technology opens up the region to a world of manufacturing opportunities, even down to charge point signage and plug-in socket covers."
"This is a learning curve, the North-east is ideally placed and if we gather that knowledge we can take it anywhere in the world."
Nissan, which has invested some £420 million in the production of eco-friendly electric cars, will commence UK production of the all-electric Leaf at its Sunderland plant by 2012.




