Boost for low carbon economy as both Nissan and Ford announce UK auto investment plans
Fri 19 March 2010
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Britain's plans to become a centre for the emerging low carbon automotive industry were boosted with the news this month that Nissan is to build the Leaf electric vehicle at its Sunderland Plant. Meanwhile, the Government has announced financial support for Ford's plans to invest £1.5bn to develop a new generation of clean, low carbon engines and vehicle technologies.
Production of the Nissan Leaf is expected to begin in Sunderland in 2013, making the plant the third in the World to produce the vehicle. Around 50,000 versions of the hatchback are expected to be produced annually. Nissan's £420m investment in electric cars is to be backed by a £20.7m government grant and up to £220m in a finance package from the European Investment Bank.
Nissan has also confirmed that construction of its advanced lithium-ion battery plant, announced last year, will begin this April. The facility, which will also be located in Sunderland, will have a production capacity of 60,000 units a year and will start manufacturing batteries in 2012 for both Nissan and its Alliance partner Renault.
The production of Nissan Leaf and the batteries is expected to maintain about 2,250 jobs at Nissan and across the UK supply chain.
The 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."
Nissan and its Alliance partner Renault are the only car makers to have committed to mass market pure electric vehicles on a global scale and together have announced production capacity of 500,000 units per year. To date, the Alliance has entered into more than 50 partnerships worldwide with countries, cities, organisations and other key stakeholders to prepare the markets and infrastructure for the successful adoption of EVs around the world.
Meanwhile, Ford has also announced plans to invest heavily in the UK in the development of facilities to produce lower carbon vehicles.
Ford’s £1.5bn investment will be spread over the next five years and will be channelled into six different projects across four Ford sites. The Government will support Ford's investment through £360 million loan guarantees to be delivered by its Automotive Assistance Programme (AAP). The loan guarantees will back a proposed loan of £450 million which is being considered by the European Investment Bank (EIB).
Projects will include the research and development for Ford’s commercial vehicles, such as the Transit and Connect vans and the development of low carbon emission diesel and petrol engines.
The Government says that around 2,800 jobs will be safeguarded as a result of the investments.
Ford of Britain chairman and LowCVP Board Member, Joe Greenwell said: “Ford welcomes this positive support from the Government. Our customers will benefit from this extensive investment and so too will the 100,000 people in the UK whose jobs are directly or indirectly dependent on Ford.
"The loan also encourages the growth of high-technology, CO2-reducing research and development in the country.”
There is also speculation that General Motors may be about to invest further in the UK. The company plans to launch the plug-in Volt - to be called the Ampera in UK - in Britain in 2011. GM has yet to announce where the car will be built, but the company's Ellesmere Port plant is reported to be 'in the frame' to manufacture it.
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