A LEADING car industry expert has criticised "doom and gloom merchants" predicting mass redundancies at Nissan, claiming it was more than capable of withstanding the loss of the Micra model.

With fears growing that bosses at the car giant's Tokyo headquarters will announce France as the venue to build the new Micra, Professor Garel Rhys has said it would not be the end of the world for the Wearside plant.

The head of Cardiff Business School's Centre for Automotive Industry Research, has investigated the possibilities for Nissan if a decision is made to build the Micra at the Renault factory in Flins.

"I do find it unduly alarming when doom and gloom merchants bandy figures of up to 2,000 job losses around," he said.

"It is the most productive car plant in Europe, and management will undoubtedly have alternative plans if the Micra contract goes elsewhere.

"Of course there would be an initial downturn, but there are alternative vehicles that could be built there."

It is believed the Wearside plant could bid for models like the replacement for the Tino, currently being built at Nissan's Barcelona plant, and even Renault models like the Megane or the Scenic.

The Sunderland site has already cut its costs by more than 20 per cent, and introduced the three-shift system used by French car giants Renault - which owns a 36.8 per cent share in Nissan - in preparation for the new Micra.

Although Professor Rhys estimates job losses in hundreds rather than thousands, he believes the employment levels could be back up to the current level of around 5,000 within a couple of years.

But with a decision expected on the Micra before the end of the month, Prof Rhys doesn't think it hinges on the outcome of the EU's verdict on a £40m Government aid package.

"Nissan is certainly keeping its cards close to its chest, but it is more than capable of deciding before hearing the outcome of the £40m state aid," he said.

MP Fraser Kemp, whose Washington and Houghton-le-Spring constituency includes the Nissan site, will meet EC Commissioner for Competition, Mario Monti next week in a bid to boost the chances of the EU backing the £40m aid package.