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Electric Leaf to spark economic recovery

Nissan’s decision to build electric vehicles on Wearside will kick-start the North East’s economic recovery, experts predicted yesterday, while SME’s in the firm’s supply chain are also gearing up to reap the rewards of the move.

The Japanese car giant yesterday confirmed its plans to manufacture its Leaf electric vehicles at its Sunderland plant, in a move that will help to secure over 2,000 jobs in Washington.

However, for a region which is still reeling from mass job cuts at the Corus plant on Teesside, the news could also act as a huge boost to the North East’s passage to economic recovery.

Economist Richard Slack, a professor at Newcastle Business School, said: “It reaffirms the leading edge of the North East in terms of automotive as a sector which is not just good news for Nissan, but for the whole of the automotives supply chain that’s in the area and all of the businesses that serve into Nissan and serve out of it.”

David Longstaff, regional head of the Federation of Small Businesses, said: “The decision is testament to the fantastic workforce at the Washington plant and will not only hope safeguard jobs but also the supply chains which are often small businesses themselves so we are delighted with that decision. “

The Leaf is also set to reaffirm the North East as a leader in the automotive manufacturing sector.

Andrew Sugden, director of membership and policy at the NECC, said production of the Leaf would make a major contribution to the region’s rapidly-growing reputation as an international hotbed for green technology.

“This announcement is particularly important because it puts in the infrastructure for the North East to become a world leader in low emission vehicles.”

Meanwhile, businesses within Nissan’s supply chain remain in pole position to cash in on the Leaf factor.

Graham Baines, finance director of Sunderland-based Unipres - which presses parts for Nissan -said: “It’s good news and hopefully we should be in a good position to take advantage of any additional business that might come our way.

“Potentially it could secure jobs in the longer term and hopefully the expertise we have will help us secure business and take advantage of the situation.

“It should provide a boost for both Nissan and for other companies that are trying to support themselves as well.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .