NISSAN will create new jobs after fresh models banished Brexit fears, officials have told The Northern Echo.

The car maker will produce the next generation Qashqai and X-Trail at its Sunderland plant.

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Colin Lawther, Nissan’s European senior vice-president for manufacturing, purchasing and supply chain, said the deals are a massive “pat on the back” for its 30-year-old Wearside factory.

Nissan had hinted future production of its flagship Qashqai model, which is already made in Sunderland, could hinge on a Downing Street compensation package for any export tariffs and financial hardship caused by the EU change.

However, after discussions with Prime Minister Theresa May, who hailed the company’s commitment as “fantastic news for the UK”, Nissan said it would put fresh investment into its near 7,000-strong job North-East base. 

Mr Lawther said the Brexit threat was “massive”, but added ministerial assurances, allied to Sunderland’s reputation with its Japanese hierarchy, had eased concerns.

He also denied the growth was due to a Government “sweetheart deal”, after officials previously warned Brexit dawdling could have affected its Wearside base.

He said: “Getting the Qashqai and X-Trail safeguards jobs and provides opportunity to expand employment in the region.”

The Wearside plant had already been chosen to make Qashqais with an auto-pilot system, a next generation battery for the Sunderland-made all-electric Leaf hatchback and an upgraded Juke model.

Carlos Ghosn, Nissan chief executive, said: "I am pleased to announce that Nissan will continue to invest in Sunderland.

"Our employees there continue to make the plant a globally competitive powerhouse, producing high-quality, high-value products every day."

Keeping Nissan in the UK was regarded as vital to Mrs May's hopes for a successful Brexit.

Mr Ghosn continued: “The support and assurances of the UK Government enabled us to decide that the next-generation Qashqai and X-Trail will be produced at Sunderland.

"I welcome British Prime Minister Theresa May's commitment to the automotive industry in Britain and to the development of an overall industrial strategy."

Mrs May said: "This is fantastic news for the UK.

"Nissan is at the heart of this country's strong automotive industry and so I welcome their decision to produce the Qashqai and a new model at their Sunderland plant.

"It is a recognition that the Government is committed to creating and supporting the right conditions for the automotive industry so it continues to grow - now and in the future.

"This vote of confidence shows Britain is open for business and that we remain an outward-looking, world-leading nation.

"The Government will continue to work closely with employers and investors in creating a global Britain, a country where there are new opportunities for jobs and rewarding careers.

"Families across the North East will be delighted at this news today and I share in their enthusiasm for what this means not just for them, but for the whole of the UK."

Sunderland makes around 300,000 Qashqais every year on its Line 1 and the base is due to produce models fitted with ‘auto-pilot’ technology next year.

Earlier this year, officials revealed they were spending £22m to make Qashqais across the Wearside plant’s Line 2 as well, to keep pace with demand.

The factory has also been chosen to make a next generation battery for the Wearside-made Leaf electric hatchback and an upgraded Juke model.

One in three British cars are produced in Sunderland, which this year celebrated its 30th anniversary.

In addition, 80 per cent of production from Sunderland is exported to more than 130 international markets.

In excess of two million Qashqais have been built on Wearside in less than 10 years.

Paul Butler, chief executive officer of the North East Automotive Alliance, said: “Nissan’s announcement is fantastic news for the North East automotive sector - not only will it secure the 7,000 jobs within Nissan, it will secure the many thousands of jobs within the supply chain throughout the UK.

“It is testament to the excellence of the Nissan employees and the supply chain that the Sunderland plant has been able to secure this investment ahead of increased competition from within the Nissan-Renault Alliance.”

James Ramsbotham, chief executive of the North East Chamber of Commerce said: “This is fantastic news and a real vote of confidence in the management, workforce and supply chain of Nissan here in the North East.

“This announcement is also going to guarantee employment for thousands of people in the region and is a great testament to the hard work which goes into making this plant such a motor manufacturing global success story.

“Nissan’s statement strengthens further our reputation as a national leader in exporting and highlights how great a place the North East is to invest.”

Andrew Hodgson, chairman of the North East Local Enterprise Partnership, said: “Nissan’s decision to produce the next Qashqai at Sunderland is a welcome one, which underlines the strength of the automotive industry here in the North-East.

“The advanced manufacturing and automotive sector is a key pillar of the strategic economic plan and is one we will continue to invest in.

"Nissan’s workforce and the wider supply chain are world class and this success is absolutely merited.”

Business Secretary, Greg Clark, said: "This is fantastic news for the UK economy, the people of the North-East as well as the automotive industry and its supply chain.

"The UK automotive sector has had a remarkable year - exporting over one million cars around the world and today's announcement underlines the confidence in the sector."