By Marcus Leach

There was further good news for the British motoring industry on Tuesday as it was announced that Nissan's new hatchback is to be produced at the company's Sunderland plant.

Last week figures from the Society of Motor Manufacturers and Traders (SMMT) showed that new car sales were up by nearly 2%, boosted by the new registration plates in March.

And now Nissan, the Japanese car giants, have confirmed that their new model will be produced in Sunderland. This could lead to 225 new jobs being created at the factory, with a potential 900 more in the supply chain before 2014.

The company's £127 million investment is being supported by £8.2 million from the government's regional growth fund.

It follows the announcement in March that Sunderland will also build the new Invitation model from 2013.

"In Europe, Nissan has achieved record growth in recent years by providing innovative, customer-focused models like Qashqai and Juke that are designed, developed and produced within the region," Nissan chief operating officer Toshiyuki Shiga said.

"Nissan already produces more vehicles in Europe than any other Asian manufacturer and the model announced today will bring world-class quality and leading technology to our customers at the heart of the European C-segment."

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