CAR manufacturer Vauxhall has given hope to thousands of North-East workers by announcing it is to build the new Astra in Britain.

The decision runs counter to the views expressed by Nissan chief executive Carlos Ghosn, who said any contracts coming to the UK depended on a commitment by the UK to joining the euro.

Workers union Amicus, which represents nearly 800 staff at Nissan's Washington plant, welcomed the announcement.

Mel Barras, regional officer, said: "It is a direct contradiction to what Nissan is saying. It should give workers hope but whether or not it will change Nissan's view remains to be seen."

Vauxhall's decision to back British car manufacturing skills will safeguard 3,000 jobs at its factory in Ellesmere Port, Cheshire, which will build the new model alongside the Vectra.

The decision to invest £80m in the plant has been greeted as an enormous boost for the country's motor industry.

The first of the new Astras will come off the production line next year and the factory will eventually produce 190,000 cars a year.

The company said the announcement proved the benefits of operating Ellesmere Port as a so-called flex-plant, where different models were built on the same production line.

Rick Wagoner, chairman and chief executive of General Motors, which owns Vauxhall, made the announcement in London during a visit to this country to mark the company's centenary celebrations.

Vauxhall, which stopped making cars at its Luton site last year, said the euro was not a decisive factor in deciding to build the new Astra in Britain.

"The euro is one of a number of factors when deciding inward investment," said a company official.

"Among the other issues are efficiency, productivity and economic stability."

Mr Ghosn's pressure on the Government over the euro has been met with scepticism in some quarters.

It is privately believed by some within the industry that he is hoping for extra government grants, similar to the £47m Nissan was given to keep the new Micra production in this country.

* Vauxhall also unveiled a new concept car, the VX Lightning, the first British designed concept car by the company in 25 years.