Treasury body, UK Export Finance, is guaranteeing a £1bn loan to Nissan as it grapples with restructuring and the transition to electric vehicles.

Nissan, with a major plant in Sunderland, is seeking to put together finance following the collapse of its proposed merger with Honda.

The company, the third largest Japanese carmaker, is looking to close plants and cut its workforce, but the loan implies that Sunderland will remain and continue to expand its electric range from the factory.

Toyota, that has a loose relationship with Nissan under the Japanese keiretsu-style system, has reportedly offered support and this may crystalise as some form of partnership. Toyota has also recently said it will expand production in the UK.

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