Nissan will invest $1.4 billion to upgrade its factory in northeast England to produce electric versions of its two best-selling vehicles, providing a boost to the British government’s efforts to resuscitate the country’s faltering economy.
The Sunderland factory, which employs 6,000 people, produces the gasoline or gas-hybrid Qashqai and the smaller Juke crossover vehicles. Nissan Motor Company announced a direct investment of up to 1.12 billion pounds ($1.4 billion) in the production of electric successors to the two models. The funds will also allow for “wider investment in infrastructure projects and the supply chain, including a new gigafactory” manufacturing EV batteries at the site, according to a second press statement from the government.
“Nissan’s investment is a massive vote of confidence in the U.K.’s automotive industry,” Prime Minister Rishi Sunak said, adding that the industry contributes 71 billion pounds to the economy each year.
Sunak paid a visit to the factory for the announcement, posing for photos with Treasury Secretary Jeremy Hunt in front of a blue Qashqai on the assembly line, greeting workers, and taking a tour of the facility. The day before, Hunt outlined tax cuts and other budget goals ahead of a national election next year, at a time when economic growth in the United Kingdom is slowing and inflation remains high, putting pressure on consumers.
The Qashqai is the second most popular vehicle in the United Kingdom this year, while the Juke is seventh. Nissan also announced that the next version of its long-running Leaf electric car will be manufactured at the plant. In 2021, the business announced plans to develop an electric vehicle at the factory, alongside batteries manufactured next door by supplier AESC, which is owned by China’s Envision. AESC already has two gigafactories in Sunderland, and the announcement on Friday adds a third.
EVs are “at the heart of our plans to achieve carbon neutrality,” according to Nissan President and CEO Makoto Uchida. “With electric versions of our core European models on the way, we are accelerating towards a new era for Nissan, for industry and for our customers.” Nissan’s goal is to electrify its entire European passenger car lineup by 2030. “With today’s announcement, we are putting that vision into action,” Uchida said at the plant, which was temporarily shut down for the ceremony.
The future of Nissan’s Sunderland plant was in doubt both before and after Britain voted to leave the European Union in 2016. Brexit opponents said that leaving the EU without a trade deal would harm the British economy because companies like Nissan would face taxes on EU exports. The auto industry is ready for post-Brexit trade duties of 10%, which will go into force in January. They threaten to hike the price of new EVs by penalizing manufacturers in their separate markets for not getting enough components from the EU or Britain.
Because Europe lags behind Asia in battery production, many EV manufacturers will struggle to satisfy the need. Nissan, on the other hand, is the only carmaker in the United Kingdom with a specialized battery plant nearby. Nissan has joined other automakers in transitioning to EV production in the United Kingdom, even as Sunak has pushed out a date for the end of new gas and diesel car sales by five years, to 2035.
BMW announced earlier this year that it will invest 600 million pounds in its Mini production in Oxford, England, in order to begin producing electric vehicles by 2026. Tata Sons, which owns Jaguar Land Rover, is establishing a 4 billion-pound EV battery facility in the United Kingdom that will create roughly 40 gigawatt hours of battery cells per year, enough to supply half of the country’s electric vehicle batteries. Stellantis, the parent company of British manufacturer Vauxhall, is spending 100 million pounds in the production of electric vans and automobiles in northern England.
Frequently asked questions
What is Nissan’s EV strategy?
By 2050, its operations and product life cycles in important markets will be electrified. Nissan declared a goal in January 2021 to achieve carbon neutrality across its operations and product life cycles by 2050. Every all-new Nissan car offered in important markets will be electrified by the early 2030s.
Is Nissan making an EV?
Overview. When the fully-electric Nissan Leaf’s power chord runs out, the new Ariya plugs in. In terms of space, range, power, and style, the Ariya substantially outperforms the outgoing Leaf. To begin, the Ariya is offered in front-wheel drive and all-wheel drive configurations, with an EPA-estimated range of 265 to 304 miles.
Who is the CEO of Nissan EV?
Makoto Uchida, CEO
On October 25, 2023, CEO Makoto Uchida speaks next to the Nissan Hyper Force electric vehicle at the Japan Mobility Show at Tokyo Big Sight in Tokyo, Japan.
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