NISSAN’S plant in Sunderland could today benefit from a £364m loan to develop cleaner vehicles.

The European Investment Bank (EIB) is expected to approve the loan for a research and development project into cleaner cars, to be split between the North-East plant and its factory in Avila, Spain.

Nissan has asked for the loan to fund research and development that could accelerate the introduction of low carbon vehicles.

It is expected to bring about positive environmental results in terms of reduction of fuel consumption, CO2 and other harmful emissions.

Nissan has told the EIB that the total cost of the project will be one billion euros.

If the loan is approved by its board when it meets in Luxembourg today, it would then need a British Government guarantee before any money was handed out.

A £2.3bn support package for the British car industry announced by Lord Mandelson, the Business Secretary, in January is mostly made up of loan guarantees as well as direct aid to car makers.

No one from Nissan was available for comment last night.

News of the loan comes after a dire start to the year for the Japanese car company, which announced plans to axe 1,200 jobs at Sunderland in January and last month froze workers’ pay.

Senior staff at the plant were also told they would have any payments they are entitled to above their normal salary cut by 15 per cent.

Jaguar Land Rover is also expected to be handed a £270m loan by the EIB at the meeting today.

The company has recently put its workforce on a fourday week to avoid job losses.