A grant to help Nissan build its electric Leaf car at its plant in north-east England is safe, new British prime minister David Cameron told parliament on Wednesday.
There had been fears the money could be pulled as part of a spending review.
“That money will be going ahead, that investment will be going in,” Cameron said, according to Reuters.
Last week, Cameron had said he wanted electric cars to be built in Britain but could not say if the GBP20m (US$28.88m) grant pledged by the previous Labour government would be cleared as the government battles to bring down a record budget deficit.
Nissan said in March it would begin building the Leaf in England from early 2013 making Britain its third global production site for the zero-emission vehicle.
A loan guarantee for GM Europe’s Vauxhall unit is also up for review, as just-auto reported last week.