Nissan has revealed that it will build its new Qashqai model at Sunderland despite fears it would pull out of the UK following the Brexit vote.
The news secures 7,000 jobs that were under threat after Nissan was given assurances by Theresa May that the plant would remain competitive in the global market.
Nissan has also announced that it will increase investment in Sunderland by adding the X-Trail to the list of models produced there. This could result in more jobs being created.
"I am pleased to announce that Nissan will continue to invest in Sunderland. Our employees there continue to make the plant a globally competitive powerhouse, producing high-quality, high-value products every day," said Carlos Ghosn, chairman and CEO of Nissan.
"The support and assurances of the UK government enabled us to decide that the next-generation Qashqai and X-Trail will be produced at Sunderland. I welcome British Prime Minister Theresa May's commitment to the automotive industry in Britain and to the development of an overall industrial strategy."
The Sunderland plant's future has been in doubt ever since Britain voted to leave the EU. Before the vote, Nissan warned that an exit vote could force it to pull out of the UK, but the city still voted in favour of leaving by more than 60 per cent.