Nissan to build new hybrid SUV model for Europe at its UK plant

By Reuters News

By Nick Carey

LONDON, Sept 16 (Reuters) - Japanese automaker Nissan 7201.T said on Wednesday it would build a new hybrid small SUV for Europe at its UK plant in Sunderland and would invest £170 million ($229 million) to assemble it there.

The company said the Kicks e-POWER hybrid would be made in Sunderland alongside the Qashqai, Juke and electric Leaf models, but it did not provide a timeline for production.

Nissan has been restructuring to slash costs by ditching plants, cutting jobs and shelving some future models, including the electric version of the Qashqai.

There have been concerns over the future of the Sunderland plant, which is Britain's largest car assembly plant.

Nissan said in June it was exploring renting out one of the two production lines at Sunderland to rapidly-expanding Chinese automaker Chery 9973.HK to build cars there.

Reuters reported later that month that the British government was in advanced talks with Nissan about providing it financial support in return for a long-term commitment and investment in Sunderland.

"The decision to build this new model in Sunderland is a huge vote of confidence in the UK's manufacturing expertise and automotive future," Britain's business minister Jonathan Reynolds said in a statement.

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