Reports suggest that Nissan's plant in Sunderland will not be used for the Micra replacement, due to be launched in 2010.

But the plant is expected to concentrate on increased production of Qashqai. A third shift is being added next month, with the creation of 800 jobs.

It is expected that the company will make an announcement on the future of the plant, which employs about 4,200 people, next month.

Nissan described the reports as pure speculation and said all production options will be explored for the Micra replacement, adding that production of the Qashqai+2, a seven-seater, will begin at Sunderland this summer.

The Nissan plant is responsible for one-fifth of the total car production in the UK and has produced more than four-and-a-half million cars since production began.