Page last updated at 08:55 GMT, Tuesday, 27 October 2009

Nissan welcomes scrappage boost

Nissan says current staffing levels are coping with the increased production

Car maker Nissan says the government's scrappage scheme has resulted in a 40% increase in production of Micras at its Sunderland plant.

During September the company said 11,000 of the cars rolled off the Wearside production line.

Production of the mid-range Qashqai has also increased, with sales rising by up to 15% on the back of the government-backed £2,000 trade-in deal.

But the company said it was unlikely to take on any new staff at the moment.

Trevor Mann, senior vice president of manufacturing for Nissan Europe, said: "The scrappage incentives have brought sales that wouldn't normally have been generated, with Micra proving one of the most popular.

"The boost to production has been very welcome, but we need to remain cautious as scrappage incentives are scheduled to come to an end shortly.

"We will continue to monitor the market and adjust our production plan accordingly."

Sales of Micra topped 10,445 across Europe in September, an increase of 4% on last year making it Nissan's second best selling model.

Qashqai sales were up 15% last month year on year.

Nissan Sunderland employs about 4,000 people.

The scrappage scheme started in May and gives consumers £2,000 off a new car if they trade in one at least 10 years old.

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