While speculation begins on the name of the likely new rival to the Ford Focus and Volkswagen Golf, the big news is the creation of more than 1,000 new jobs in the region.
A total of 225 positions will become available at Nissan, while component suppliers based in the UK will hire an additional 900 employees.
Production capacity for the new hatchback will be 80,000 units, requiring an extra shift at Sunderland. This means that both production lines will be operating 24 hours a day for the first time, bringing total output to over 550,000 cars.
This announcement comes on the back of the news that the production version of the Nissan Invitation show car will also be made in Sunderland, cementing the plant's position as the largest producer of cars in Britain.
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