Sunderland in the North East will now have more than 2,000 secured jobs, after it was announced today that Nissan has decided to build a five-seater mainstream electric car called the Leaf, starting 2013, on the support of a £420 million investment from Nissan.

Nissan would be granted £20.7 million by the Department of Business for the project and the European Investment Bank would invest £197.3 million.

"It's a significant vote of confidence for Sunderland", Paul Wilcox, the Managing Director of Nissan in the UK, said.

Mr. Wilcox said there are plans to build about 50,000 cars per year and it would be marketed as, "the world's first affordable, mass-produced, zero-emission car". The rear door has a range of 100 miles and can travel at a top speed of more than 90mph.

The car deal was out a day after a loan of £80 million was set aside for a steelworks in Sheffield to help it to build manufacturing facilities for nuclear power plant components by Lord Mandelson.

This project is sure to secure jobs within the factory, which will also make the vehicle's lithium-ion batteries. About 2,250 jobs would be secured across the whole supply chain.