he U.K.’s beleaguered auto industry has taken a sudden green turn this summer with Nissan and Toyota announcing major initiatives. Toyota Motor Europe (TME) announced in July it would build a full hybrid version of its Auris at its facility in Burnaston, Derbyshire, beginning in mid 2010. Engines will be built at Toyota’s factory in Deeside, North Wales.
      Nissan, within its Renault-Nissan Alliance, plans to build a lithium-ion battery factory at its complex in Sunderland in northeastern England. Nissan describes it as the "Nissan European Mother Site" for battery production and the centerpiece of the newly established Low Carbon Economic Area (LCEA) for the North East of England. LCEAs aim to pull together national, local and regional agencies to focus on accelerating the growth of low carbon industries, skills base and supply chain. Nissan will also build a battery plant in Portugal.
      "The decision was taken to manufacture in both the U.K. and  Portugal as both governments have demonstrated that their vision on zero-emission mobility is very much in line with the strategic direction the Renault Nissan Alliance are taking," says Colin Lawther, vice president, production engineering and quality engineering, Nissan Europe. "Both governments have also offered financial assistance and other support to ensure that Nissan locates the battery plants in their countries. And they recognize the contribution in terms of the economy and jobs the plants will make."
      The US$339-million investment will create about 350 jobs at the U.K.’s largest automobile plant. Lawther says the main advantages gained by manufacturing the batteries in Sunderland are Nissan’s existing work force and its logistical infrastructure.
      "The U.K. site has consistently delivered on all projects for Nissan and is considered an ideal location to develop and deploy best practices for new projects," Lawther says. "Sunderland has a global training center that has successfully trained Nissan staff from Russia and India. This capability was one of the considerations on choosing the U.K. as the first overseas plant. The engineering and production excellence evident in Sunderland can be easily utilized to set the standard for overseas production, and staff are flexible, motivated and keen to expand the capabilities of Nissan. These attributes are seen as strong enablers in becoming a flagship/benchmark operation."
      The Sunderland complex currently employs about 4,100, plus 1,000 contractors.       "The North East has distinguished itself as the first specialized region for ultra-low carbon vehicles," said U.K. Business Secretary Peter Mandelson at the official announcement.
      As part of the LCEA, the British government intends to establish:

• a training center — the first to specialize in the manufacture and maintenance of ultra-low carbon vehicles;
• an R&D center — serving as a home for research from local universities bringing together fundamental and applied research in ultra-low carbon vehicle technology and use;
• an open-access test track to test new technologies.

      The LCEA strategy identifies a range of low-carbon sectors with potential for job creation and growth, including wave and tidal power; nuclear power; offshore wind; and ultra-low-carbon vehicles.
      Nissan’s Sunderland plant will be among the facilities supplying batteries for the company’s new LEAF car, which Nissan boasts as "the world’s first affordable, zero-emission car." The LEAF is due to launch in late 2010 in the U.S., Japan and Europe.
      Nissan also plans to invest $22 million to assemble a new 2.0-liter petrol engine at Sunderland. The project will preserve about 130 jobs and has the potential to create 200 new jobs by 2013, depending on market conditions. The upgrade, which will occur over four years, will allow 65,000 engines to be produced annually beginning in May 2010.
      Employment at Sunderland is also being boosted by European "scrappage schemes," a version of the U.S. clunker plan offering subsidies for trade-ins of old cars. Nissan announced in July it was adding 100 jobs at the plant due to business created by scrappage.