Nissan brought some cheer to a gloomy British car industry yesterday when it unveiled the Qashqai, a small, 4x4 that will be built at its Washington plant in the north-east of England.

About 200 jobs are being created in connection with the model, in addition to the 100 apprenticeships previously announced, though the latest recruits are getting "temporary" contracts only.

The Japanese-owned car maker, which received £5m government funding for development costs, plans 130,000 Qashqai a year, bringing total output from Wearside to 400,000.

The expansion came as figures from the Society of Motor Manufacturers and Traders showed a 6% slump in UK vehicle sales during August.

Carlos Ghosn, Nissan's chief executive, said: "European customers want it all: dynamic design, driving performance and attractive premium interior - Qashqai delivers it all." The car is described as a crossover, the top half reminiscent of a saloon and the bottom resembling an SUV. Production will start in December, with sales starting in the spring.