Strong recent sales of the Nissan Micra have caused the manufacturer to create 150 new jobs at its Sunderland plant.
Staff are to be employed on temporary four-month contract at the plant, with Nissan hoping to manufacture around 14,000 extra cars from June to keep up with demand.
The government scrappage scheme across Europe, which enables motorists to hand in their ten-year-old used cars for a £2,000 discount towards a new vehicle, is believed to be a key reason for this rise in demand.
Motorists in the UK will be able benefit from the same scrappage deal from later this month.
Trevor Mann, Nissan senior vice president for manufacturing in Europe, said: "This short term spike in demand, fuelled by a number of scrappage schemes introduced across Europe, is clearly a very welcome boost to business during what is a highly challenging period for all car makers."
As well as the Nissan Micra, the Nissan Note and Qashqai have also benefited from positive sales across Europe.
According to the BBC television programme Top Gear, "Nissan makes the Micra like it makes all its cars. Despite being the entry level car, it’s nigh-on bomb proof and the materials used are all impressively upmarket".