Following the UK Government's pledge to ensure the Sunderland plant remains competitive even after Brexit, Nissan said it will continue its investments in the plant, securing more than 7,000 jobs in the process.
The move was hailed by No 10 as a "vote of confidence" in the United Kingdom in the wake of last June's referendum vote to leave the European Union, securing 7,000 jobs at the plant and a further 20,000 in the wider economy.
Nissan announced yesterday it would be producing the new Qashqai and its X-Trail SUV at its Sunderland plant.
Nissan chief executive Carlos Ghosn had warned at the 2016 Paris motor show that the Brexit vote could place the Sunderland operation's long-term viability into question.
Theresa May said Nissan's decision is "fantastic news".
The company's decision follows a commitment from the government that the Sunderland plant will remain competitive post-Brexit.
Nissan has invested 3.7 billion pounds (S$ 6.254 billion) in the 30-year-old site and manufactured 9 million cars there, making it the UK's biggest auto production facility.
Production of the next Qashqai model is expected to begin in 2018 or 2019. More directly focused on the United Kingdom, a record was created as production drove up by 6.6 pent to 50,133 cars.
A Nissan logo, as the company launches the second generation Qashqai, at the Nissan plant in Sunderland, where the workforce is set to increase to more than 7,000 for the first time.
The plant now builds the Qashqai, Juke, Note and Leaf models, along with Infiniti Q30 and QX30, directly providing 7000 jobs with thousands more elsewhere in the supply chain.
Nissan has announced its Sunderland factory will produce the next-generation Qashqai and X-Trail models, despite earlier fears of trade issues following the Brexit vote.
The spokesman added that the Government and Nissan merely engaged in "open and honest dialogue" about the government's vision for the future of the UK's automotive industry as Britain leaves the EU.
British Prime Minister Theresa May Thursday welcomed an announcement by Japanese auto maker Nissan that it is to build new models at its plan in Sunderland.
MPs have welcomed Nissan's continued investment in Sunderland, although some have expressed concerns about the nature of the vehicle maker's deal with the government.