Could Tata build the new Nano in the North-east?

Mar 11 2010 by Jez Davison, Evening Gazette

A NORWEGIAN electric car maker is poised to launch a new production operation in the North-east, it has emerged.

Business development organisation The Norwegian Collaboration Centre (NCC) is thought to be close to brokering a deal that could create hundreds of jobs and position the North-east as a UK test-bed for electric vehicles.

The identity of the company remains under wraps, but it is thought there are only two possible candidates after Norway’s largest electric car maker, Think, ruled itself out of the running.

One of the companies, Miljobil Grenland (MG), is part-owned by Indian conglomerate Tata, which is thought to be seeking a European base for production of its budget Nano car.

The other is Elbil Norge, pioneer of the three-seater Buddy vehicle.

Both companies declined to comment.

Norwegian motor trade body Norstart said MG was the most likely to be eyeing up North-east England because it had a strong foothold in European markets.

In a statement on its website MG - which sells vehicles in Italy, Spain and Turkey - said it was firming up plans to introduce Tata-branded vehicles in the UK this year.

The company has the financial muscle of a global brand in Tata, which last month mothballed its steelmaking operation at Redcar.

Unions have for some time suggested that Tata consider relocating its European car making to the area.

However no deal with either company has been signed.