This investment is excellent news for the North East and another vote of confidence for UK manufacturing.
The continued success of Nissan in the UK demonstrates the strength of the car industry here, and its importance as we rebalance and grow the economy.
This announcement shows how the car industry in partnership with the Government continues to win important long term investment projects in a tough competitive sector, helping the UK to get ahead in the global race.
- Production started at Nissan Sunderland Plant in September 1986.
- Total investment made and announced since then is over £3.5bn and total plant volume stands at more than 6.9 million units.
- 80 per cent of production is exported to 97 international markets.
- Its current model line-up is Qashqai, Qashqai+2, Juke and Note.
- Forthcoming production at the plant includes the 100% electric Nissan LEAF, the new Nissan Note and the next-generation Nissan Qashqai.
This milestone, our first premium product to be manufactured at Sunderland, reconfirms our commitment to UK manufacturing and the ongoing success of the plant which is moving up the value chain.
Just as important, the new Infiniti, which will be exported around the world, is being developed with help from our London design centre and our European Technical Centre.
Nissan's £250m investment will create a further 720 jobs in the UK supply chain, raising the new jobs total to 1,000.
The new model will be developed with help from Nissan's design centre in London and technical centre in Cranfield and then exported around the world, the firm said.
Around 280 of the new jobs will be in Sunderland, with the rest in other sites across the country.
The North East plant will build more than half a million cars this year, the first UK manufacturer to achieve this milestone.
Car giant Nissan is to build a new luxury model in the UK, creating 1,000 jobs with a £250 million investment.
The new global model will be manufactured at the Japanese firm's plant in Sunderland, which employs 6,000 workers.
The car, built under Nissan's Infinity premium brand, is set to be produced from 2015.
Read more on ITV Tyne Tees.
Nissan's decision to manufacture a new model at its Sunderland plant is "a huge vote of confidence" in the UK, according to the Vice-President of UK Manufacturing Kevin Fitzpatrick.
He told the BBC: "This will put the plant under 24-hour running so it is a big boost."
He did not reveal any details about the new model except that it would be a "c-type hatchback" and would aim to compete with cars like the Ford Focus.
David Cameron said: "It is fantastic news that Nissan will be building their new hatchback model in the UK and that they expect to create more than 1,000 jobs at the Sunderland plant and in the supply chain across the country.
"It's proof of the strength and vitality of the British manufacturing industry that leading companies like Nissan are expanding their production in the UK."
Nissan said the new hatchback, which will be named closer to its sales launch, will play a major role in the company's continued expansion.
Around 80,000 of the new hatchback model will be built annually, triggering the need for the Sunderland plant to launch an additional shift.
This will see both the factory's production lines operating around the clock for the first time in the plant's 26-year history, a move which will take manufacturing capacity beyond 550,000 units.
Japanese car giant Nissan is to build a new hatchback at its UK plant, creating more than 1,000 jobs at the site and at component companies, David Cameron will announce during a visit to the company's headquarters in Yokohama, Japan.
The new medium-sized model will be built in Sunderland in 2014, sparking an additional 225 jobs at the factory and 900 at component companies supplying Nissan.