UK business secretary [minister] Vince Cable has hailed Nissan’s decision today (6 March) to launch a new compact car to be known as Invitation, that will create up to 2,000 new jobs in England.
Cable praised the move by Nissan, planned for next year at its Sunderland plant in the north east, as evidence of a “clear vote of confidence in the UK auto sector.”
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The British government is to commit GBP9m (US$14m) of regional growth fund (RGF) money to the project, with Nissan adding a further GBP125m in a move expected to create 2,000 new jobs, including 400 at the car plant itself.
The Invitation will be built alongside the Juke crossover and will compete in the mainstream B-segment. In addition to vehicle assembly, Sunderland will carry out axle production, cylinder head casting, camshaft machining and engine assembly.
“The decision [from Nissan] is another clear vote of confidence in Britain’s manufacturing industry, and vindicates the government’s decision to put support for manufacturing at the core of its economic strategy,” said Cable. “In this case, only GBP1 of public sector RGF money can leverage GBP15 of private money.
“Manufacturing makes a disproportionately large contribution to productivity growth in the UK; it generates half our exports and it is responsible for much of the business R&D in this country. So providing the right framework of incentives and support will have a material effect on future rates of economic growth.”
It is anticipated the new model will have an initial annual volume of around 100,000 units. Nissan said the decision would keep Sunderland as the largest car plant in the UK.
“A generation ago the [UK] automotive sector appeared to be in irreversible decline, beset by strikes and poor management – but today it is a sector transformed,” said Cable.
“Labour relations are constructive, even when tested during the recession. Companies and university research teams are working together on new technologies. The government is helping the industry to address skills gaps by funding apprenticeship places, including higher apprenticeships at degree level.”
