Nissan's £1bn investment in UK electric cars

author: FutureCar Staff    

Japanese auto giant Nissan is set to invest over £1 billion in building electric models of its popular Qashqai and Juke vehicles in Sunderland, England, according to the Financial Times. The decision to produce electric versions of these cars has been supported by the UK government, potentially providing hundreds of millions of pounds in financial aid. This move is expected to secure the future of 6,000 jobs at Nissan's largest European facility, which also houses an electric battery plant.

The announcement is scheduled to take place at the Sunderland factory, with Nissan's CEO Makoto Uchida and Prime Minister Rishi Sunak in attendance. However, a spokesperson for Nissan declined to comment on the matter. Meanwhile, the UK's finance minister, Jeremy Hunt, has pledged to invest £4.5 billion in strategic sectors, including the auto industry.

As companies and governments increasingly shift towards electric vehicles, Britain aims to play a leading role in their production. However, the government recently delayed the ban on the sale of petrol and diesel cars by five years, from 2030 to 2035, as part of its efforts to achieve net zero carbon emissions by 2050.

Nissan had previously expressed concerns about the future of the Sunderland site in the event of a no-deal Brexit. However, the company committed to its future after a trade deal was reached with the government. Nevertheless, the UK's car industry organization warned of a potential 10% increase in customs duties on electric cars crossing the Channel, which could impact automakers in the near future.

Although the UK left the European Union in 2021 and secured a free trade agreement, starting from January 1, 2024, at least 45% of the value of vehicle parts must originate from either the UK or the EU to be exempt from customs duties. This requirement poses a challenge for the British car manufacturing sector, as electric car batteries often come from China, despite efforts to establish domestic production.

The investment by Nissan in electric vehicle production in Sunderland is a significant step towards the UK's goal of becoming a leader in the field. It not only secures thousands of jobs but also supports the country's transition to a more sustainable automotive industry.

FutureCar Staff