NISSAN’s Sunderland car factory is expected to receive a boost this week when Gordon Brown gives his backing to plans that will completely reshape production at the plant.

The prime minister is expected to reveal a package of government support on Tuesday during a visit to the Nissan design centre in London. The Japanese carmaker, run by chief executive Carlos Ghosn, is expected to say it will increase production of the popular Qashqai, and introduce a new small sports utility vehicle.

However, Nissan is also expected to confirm that the Micra, a high-volume small car, will be taken out of Sunderland in two years’ time.

The Sunday Times revealed the move last month. From 2010, a new version of the Micra is likely to be made in Chennai, India.

Brown will pledge government support for the plant, although it was not clear this weekend whether ministers would provide cash to fund model development or new capacity.

Nissan Motor Manufacturing (UK) was established in 1984 as the first of the Japanese carmakers’ “transplants”, supplying cars for European markets. Sunderland has been acclaimed as one of Europe’s most efficient plants, but in recent years Nissan has expressed concern about the pound-euro relationship.

When the current Micra model was introduced in 2003, Ghosn gained UK government support for Sunderland after threatening to transfer production elsewhere.

The Sunderland plant employs 4,200 people and produces around 350,000 cars a year. An extra 800 workers are expected to be taken on in July to staff a third shift to work on the Qashqai production line.

Meanwhile, the government is under pressure to fight European taxes that could add thousands of pounds to the price of new Jaguars and Land Rovers.

Ford, the American car giant, will complete the sale of the two British car companies to India’s Tata group this week.

Europe plans to levy hefty taxes on cars that do not meet strict emission limits by 2012.

An exemption will allow small-volume carmakers to avoid the blow, while luxury carmakers that are part of bigger groups will be sheltered by their parents’ smaller car fleets.

Under Tata’s ownership, Jaguar and Land Rover will have no such protection.

European environment ministers will discuss the planned taxes on Tuesday.

UK car-industry executives said the government had been slow to act on the threat.

“In Germany and France the politicians have been working hard to make sure that their manufacturers are okay,” said one senior motor-industry source.

“That has not been the case so far in Britain.”

Times Recommends

• C&G axed - 1,660 jobs to be lost
• UK house prices rise 1.1% as buyers return
• Mixed reaction to US banks repaying bailouts