Nissan Motor Co is expanding its UK production with a plan to produce a new midsize hatchback at its Sunderland plant from 2014.
The Japanese automaker said Tuesday it will be able to make 80,000 of the new cars at Sunderland a year, lifting annual production capacity at the plant to more than half a million vehicles.
Nissan said the hatchback production will add 225 jobs at the automaker and 900 at companies that supply components to Nissan in the UK.
The company is investing 127 million pounds ($A196.88 million) in the expansion.
It said the decision to make the hatchback at Sunderland confirms its return to the medium-sized car market in Europe.