Page last updated at 11:01 GMT, Friday, 8 May 2009 12:01 UK

Scrappage boost for Nissan jobs

Production is to step up at the Sunderland plant

The Nissan factory in Sunderland is recruiting 150 staff on short-term contracts as the scrappage scheme spurs demand for cars.

Under the scheme, announced in the Budget, buyers get a £2,000 discount when a car that is at least 10 years old is scrapped and a new car bought.

Sales have risen elsewhere thanks to similar schemes. UK Dealers report rising footfall ahead of May's launch.

Earlier this year, the factory cut 1,200 jobs as sales fell.

The job cuts were a result of "looking at the market over the long term and taking the decision to right-size the company," a spokesman for Nissan told BBC News.

"That hasn't changed. Our full-year outlook for 2009 is still extremely tough."

But Nissan is to produce 14,000 more cars to meet the anticipated short-term spike in demand for Micra, Note and Qashgai cars, linked to the scrappage scheme, he said.

Last month, sales rose 9% in Germany, 31% in France and 21% in Italy, rises that Nissan attributes to the scrappage scheme.

"The dealerships [in the UK] have already started to experience an increase in footfall. That will increase as it gets closer to the launch date in the UK," Nissan's spokesman added.

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