Some 20,000 new Micras a year will be built on Wearside

The Japanese company is investing �95m in the new coupe-cabriolet version of the successful small car.

More than �3m of public money has been given to the company to secure the work in the UK.

The company has received a �3.26m grant from the Department of Trade and Industry (DTI), which says will help secure 250 jobs.

Production will begin at the Sunderland plant in Autumn 2005, with design work ongoing at Nissan's technical centre in Bedfordshire.

The news comes as staff at the Sunderland factory consider industrial action over plans to move some workers from Wearside to Bedfordshire.

Mario Canavesi, senior vice-president of marketing and sales with Nissan Europe said: "This new version of the Micra will be Nissan's first European-built coupe-cabriolet, and will be a great addition to the product line-up."

Dedicated workforce

A team of 250 people will be dedicated to the production of the new car at Sunderland, including a number from the existing 4,500 workforce.

Initially, 20,000 of the cars will be built at the plant.

Colin Dodge, managing director of Nissan Motor Manufacturing (UK) Ltd, Said: "I would like to extend my thanks to the Department of Trade and Industry whose continued support for the company and the North East has made this project possible."

The new car will be a redesigned version of the Micra C+C concept, first shown at the Paris Motor show in 2002.

About 200,000 Micras a year are currently produced at Sunderland.

In 2001, Nissan decided to produce the new Micra in Sunderland rather than in France.

But in October last year, the company warned the future of car production at Sunderland could be at risk if the UK did not adopt the euro.