Government honour £20m Nissan car grant

Jun 10 2010 by Kelley Price, Evening Gazette

NISSAN supply chain bosses have applauded the Treasury's decision to honour a £20m grant for the car maker to produce its Leaf electric car in Sunderland.

The grant, signed off earlier this year by former Business Secretary Lord Mandelson, was feared to be under threat as the new coalition Government reviewed spending cuts to tackle the UK’s deficit.

Yesterday, however, PM David Cameron confirmed the grant would be paid.

The decision has been welcomed by suppliers. Kevin Heyhurst, finance director at Newton Aycliffe company ThyssenKrupp Tallent, which supplies internal bodywork parts for Nissan and a range of other leading automotive manufacturers, said: “This is great news for both Nissan and the North-east, as it strives to become a centre of excellence for electric vehicles.

“There were concerns last week that the Government might have either stopped or deferred the grant but, from its perspective, it’s a good investment for both the North-east and the country.

“It was the right decision, it’s further support for the region and all the things we’re trying to do.”

The move, he said, was the latest boost to the car market, which has seen a marked improvement this year following a crippling downturn in 2009. “Things are significantly better than they were in the early part of 2009 when the market was very depressed.”

Alan Hall, region director for manufacturer’s body EEF, said: “There was a real concern the new coalition Government would not fulfil its promise on this.

“The fact they have is not only brilliant news for Nissan but for North-east manufacturing.

“There is an extensive supply chain on Teesside and the good effects of this will filter down through it.

“We already have evidence of North-east companies opening up to a worldwide market for electric cars. Nissan’s battery plant and electric car technology opens up the region to a world of manufacturing opportunities, even down to charge point signage and plug-in socket covers.

“This is a learning curve, the North-east is ideally placed and if we gather that knowledge we can take it anywhere in the world.”

Nissan will build one of just a handful of electric car battery plants at Sunderland and start Leaf production at the same plant by 2013.

The Japanese firm has invested £420m in the production of electric cars.

Last month, the car maker unveiled the price for the Leaf to be £23,350, which puts it on a par with similar leading models on the market.

The North-east is set to be a trailblazer for the mass roll-out of electric vehicles, after it became one of just three UK Plugged-in Places and was also named a test bed for the UK’s Low Carbon Vehicle Demonstrator programme. Hundreds of charge points will be installed at venues across Teesside.