Manufacturing giant Nissan will on Friday reveal a breakthrough commitment worth potentially £1bn to the region by building two electric versions of its vehicles at its North East hub, according to reports.

Sky News has reported the Sunderland factory will soon build new electric Qashqai and Juke models following long discussions with the Government, expected to help preserve the jobs of 6,000 people who work there.

The move is said to be part of the £1bn EV36Zero electric vehicle hub in Sunderland which was announced in 2021, including plans for a gigafactory built by Japanese headquartered company AESC.

The investment will be supported by a contribution from the Government, reports have suggested.

The Northern Echo: Nissan Sunderland.Nissan Sunderland. (Image: Nissan)

It has also been reported that this manufacturing decision played a role in today's autumn budget where Chancellor Jeremy Hunt announced £4.5bn of funding into manufacturing which includes the automotive industry

Mr Hunt said: "Britain is now the eighth-largest manufacturer in the world, recently overtaking France.

"To build on this success, we are targeting funding to support the sectors where the UK is or could be world-leading.

"Our £4.5bn of funding will leverage many times that from the private sector, and in turn will grow our economy, creating more skilled, higher-paid jobs in new industries that will be built to last."

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Automotive sources also told Sky News that Nissan is expected to commit "hundreds of millions" of pounds to the project.

There are fears many electric cars exported between the UK and the EU will be hit with 10 per cent tariffs due to post-Brexit trade rules due to be implemented from January 1.

This is because most manufacturers will struggle to meet the requirement to source at least 45 per cent of their components by value in the UK or EU, due to the lack of battery production.

But Nissan is the only carmaker in the UK with a dedicated battery plant nearby.

The Qashqai is the UK’s second most popular new car so far this year, with the Juke at number seven on the list.

Paul Edgeworth, leader of the Liberal Democrats opposition on Sunderland City Council, said: “If these reports are true and Nissan’s Sunderland plant is going to receive major investment to build the new electric Qashqai and Juke cars then it really is proof that Sunderland’s manufacturing workforce is the best in the world.

“Major investment from Nissan into the UK electric car manufacturing market would be another huge vote of confidence in Wearside’s workforce coming on the back of the company’s EV36Zero battery factory currently being developed alongside the Nissan plant – and will help safeguard thousands of skilled jobs for the region.”

Neither Nissan nor the government have confirmed or denied the reports.

The Northern Echo has contacted Nissan for confirmation.