Nissan chooses Sunderland to produce the Leaf

With over 50,000 a year to be manufactured - the Leaf could become a serious competitor in the five-door hatchback market, with the electric car able to run 100 miles between charges.

The manufacturing decision forms part of a £420 million investment by the Japanese company whilst safeguarding jobs in the country, which will produce the Leaf from 2013.

The Leaf set to be the first major electric car in the country, has a top speed of 90mph and has zero-carbon emissions.

Nissan has spent a lot of time researching the safety of the 'Lithium-ion' batteries with partner company NEC, so that they won't catch fire or overheat by accident.

The car will run on 8 hours of charging from home, but could be reduced to as little as 30 minutes if using a specially designed electric car charging centre which are starting to sprout up around the country.

The car will also make use of GPS technology to keep in touch with a Nissan data centre where entertainment and charging centre data can be provided.

This will allow drivers to know exactly when their car will run out of energy, and how to get to the nearest charging centre.

The charging centre's will also be fully interactive with iPhone's and other mobiles, allowing users to use energy from the charging centre to power its air conditioning units before driving away, allowing the user to conserve the car's battery supplies.

The car is set to go on sale in early 2011 and is working with local and national governments to ensure this.

UK’s Business Secretary Lord Mandelson said: “This investment is a fantastic vote of confidence in the Sunderland plant and its excellent workforce. The automotive sector is of key importance to the UK. It supports R&D, technological innovation, skills and a supply chain that’s a mainstay of the wider manufacturing sector.

"Today’s news from Nissan, with support from government, shows that by working together we can achieve our aim of making the UK a world-leader in ultra-low carbon vehicles."

Andy Palmer, senior vice president at Nissan Motor Co., Ltd., and responsible for the company's global EV strategy, said: "The world is at the dawn of a new era in automotive transport. Nissan Leaf, which will go on sale later this year, is a five-seater hatchback that offers the same space, practicality and performance of a similar car in its class – minus the tailpipe emissions."

"Thanks to the UK’s firm commitment to a low carbon future in terms of infrastructure, customer incentives and educational programmes, Nissan LEAF will be built at Sunderland, making the UK the third country in the world to produce this revolutionary car."

The investment will be supported by a £20.7m (EUR23.1m) Grant for Business Investment (GBI) from the UK Government and a proposed finance package from the European Investment Bank (EIB) of up to £197.3m (EUR220m).