A production version of the Nissan Invitation, a hatchback concept unveiled today at the Geneva Motor Show, is to be built at the company’s Sunderland plant from next year.

The announcement was made by Nissan executive vice president, Andy Palmer, who confirmed that Sunderland will also carry out axle production, cylinder head casting, camshaft machining and engine assembly, representing an overall investment of £125m.

The project, which is being supported by a £9.3m grant from the Government's Regional Growth Fund, is expected to create around 2,000 new jobs, with an initial annual volume of around 100,000 units.

Trevor Mann, Nissan senior vice president for manufacturing in Europe, said: “I am delighted that Sunderland has secured what will be another very important model for Nissan in Europe.”

Business secretary Vince Cable added: “It is fantastic news. The investment is a boost for jobs at Nissan’s plant as well as the wider supply chain.”