Nissan announcement is 'all about commitment and investment'

Nissan's new hatchback is to be produced at its Sunderland plant, the Japanese car giant has announced.

The model, could lead to the creation of 225 jobs at the factory and a further 900 in the supply chain by 2014.

The company's £127m investment is being supported by £8.2m from the government's regional growth fund.

It follows the announcement in March that Sunderland will also build the new Invitation model from 2013.

Terry Scuoler, chief executive of the EEF - the trade body which represents UK manufacturers - told the BBC "this is very very good news".

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