Nissan have chosen the UK to build European models of their new electronic car, providing a morale boost for the manufacturing sector. The news is the first sign of a massive £420 million investment in electric cars by the Japanese carmaker .

Known as the Nissan Leaf, the new model will begin production in 2013, aiming to be the world’s first affordable mass-produced zero emission vehicle . Some 50,000 will be built per annum at the Sunderland plant, with 600 jobs created .

The news should help to buoy up the hard-hit car and car finance industries, who despite experiencing a strong start to 2010 are reportedly concerned about the rest of the year. The Sunderland plant currently employs around 4,000 workers.