The whole investment in the UK totals over £55 million, including a £6.2m contribution from the government.

The new compact car will go into production in two years when the current version of the Micra ends its manufacturing cycle. The platform will be used for at least three new models, including the next-generation Micra. The decision was announced following a visit by Prime Minister Gordon Brown to Nissan's european design centre in central London where he met Carlos Ghosn, the carmaker's president and CEO. "Nissan is a global manufacturer with strong roots in Britain and I'm pleased to welcome Nissan's new investment in the UK,” said Brown. “Today's announcement that a brand new car is to be designed and built in the UK is another important boost to our manufacturing industry.” The Nissan Sunderland plant is the most productive in Europe and last year built a record 374,000 vehicles. It currently employs 4,700 workers but it is not yet known if that figure will rise following the arrival of the new small car.