A CASH injection of more than £250m will spark the creation of hundreds of jobs in the North East as Nissan today unveils plans to produce a new luxury car.

More than 1,000 jobs will be created as the Japanese car-maker pumps millions into manufacturing the Infiniti car that will be made from 2015 and shipped across Europe and Britain.

It is the first time in 23 years that a new car brand has been produced on such a scale in this country, and will spark the creation of 280 jobs at Nissan’s Washington factory.

Another 720 jobs will be created at component companies supplying Nissan with a string of local companies set to benefit.

The announcement comes as the manufacturer reveals it is producing 500,000 units annually for the first time in their history, an all-time industry record.

Prime Minister David Cameron said: “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.”

Business Secretary Vince Cable said: “Nissan in the UK goes from strength to strength – not only will the new car be made here and exported all over the world, the UK has already contributed to its design and development.

“Today’s news is a strong endorsement of the quality of Britain’s car industry, which is creating jobs, taking on apprentices and contributing to building a stronger economy.”

Capacity limitations at the Sunderland plant mean a hatchback announced in the spring will now be produced elsewhere.