Renault and Nissan's decision to drop one in five suppliers has yet to have an effect on parts manufacturers in the region - but the motor giants said the move may be to the benefit of local firms.

The French and Japanese car makers have been working together for five years, reducing costs by using the same components.

As new models come into production, it means more parts presently provided by UK firms could be sourced from suppliers to Renault's plants on the Continent.

But those North-East suppliers who win a contract to supply both Renault and Nissan could more than double their order book.

A spokeswoman for Nissan's Sunderland plant said: "There is no immediate threat to North-East jobs. This is all about competitiveness and could work either way."

Suppliers who have set up shop near to the Wearside factory are unlikely to be affected, as they provide a synchronised delivery service to fit in with Nissan's requirements.

The new Nissan Micra, launched in November 2002, was the first model built on Wearside to come under the Renault Nissan Purchasing Organisation.

About 80 per cent of its components are sourced outside the UK.

The purchasing organisation's boss, Odile Desfroges, made comments at the Geneva Motor Show suggesting more savings were to come.

That could affect future models to be made at Sunderland.

The next two due off the assembly line are the Micra C+C and the Tone.

The first will use the same parts as the Micra, apart from its retractable metal roof.

The Tone will be built on a stretched Micra platform.

The spokeswoman said it was too early to tell where components would be sourced for the latest line to be announced, based on the Qashqai concept car.

* A survey published yesterday named the old version of the Micra the most economical used car on Britain's roads.

The study, carried out by independent car warranty provider Warranty Direct, looked at four-year-old vehicles with an average of 40,000 miles on the clock.

It looked at reliability, repair bills, parts costs, labour rates and annual service charges.