Nissan to build Leaf EVs in UK

SUNDERLAND, ENGLAND - Japanese auto group Nissan Motor Co Ltd is to build its Leaf electric car in Britain, two sources familiar with the situation told Reuters.

Carmakers worldwide are investing large sums in electric vehicles as they seek to meeting tightening regulations for emissions and struggle to pull themselves out of a savage industry downturn.

Nissan has already announced production of the all-electric Leaf hatchback in Japan and the United States, with the car due to go on sale at the end of this year.

The company has not specified how much the car will cost, saying only that it will be competitive with similar-sized cars with conventional engines.

Nissan, with French alliance partner Renault, are aggressive proponents of electric vehicle technology, together investing around 4 billion euros (US $5.5 billion) in electric vehicle projects.

Founded in 1984, Nissan's Sunderland factory in northeast Britain employs around 4,000 people and built its 5 millionth vehicle in June 2008.

Nissan said last month that its new Juke small crossover would be manufactured at Sunderland.

Last year it announced that it would make batteries for electric vehicles in the UK, as well as at a site in Portugal.