Nissan's plan for UK's biggest car factory with fresh electric models

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【Summary】Nissan is expected to announce the production of two new electric car models in its Sunderland plant, securing the future of the UK's largest car factory. The investment, which could reach £1bn, is likely to receive government subsidy. This comes after the UK Chancellor announced £2bn of government support for zero-emission technology investments in the automotive sector. The move is seen as a positive development for the UK car industry and the factory's 6,000 workers.

FutureCar Staff Nov 23, 2023 8:17 AM PT

Nissan's plan for UK's biggest car factory with fresh electric models

Nissan is set to make a significant announcement regarding the future of the UK's largest car factory in Sunderland. According to reports from Sky, the Japanese carmaker plans to build two new electric models to replace its Qashqai and Juke crossover cars. This move is expected to secure the future of the factory and could involve an investment of up to £1bn, with government subsidies likely to be involved.

The announcement comes shortly after Chancellor Jeremy Hunt pledged £2bn of government support for zero-emission technology investments in the automotive sector. Hunt stated that both Nissan and Toyota had warmly welcomed this measure. The investment in the Sunderland plant will be a positive development for the UK car industry and the factory's 6,000 workers.

The car industry in the UK has faced challenges in recent years due to Brexit uncertainty, the pandemic, and supply chain issues. However, there have been encouraging investment announcements from other companies. India's Tata plans to build a £4bn battery factory to supply Jaguar and Land Rover, while BMW is investing £600m to upgrade its factory for electric Mini cars.

The Sunderland plant is currently capable of producing up to 600,000 cars per year, but its output has been lower in recent years. In addition to the petrol models of the Qashqai and Juke, the plant also manufactures the electric Nissan Leaf. The factory receives batteries from a neighboring factory previously owned by Nissan, which is now operated by Chinese-owned AESC.

The AESC factory is expanding its capacity to produce car batteries, aiming for 9GWh by 2024 and eventually reaching 38GWh, enough for approximately 600,000 car batteries per year. Nissan had previously announced that Sunderland would become an electric vehicles hub, but specific details about the models to be built there have not yet been revealed.

While Nissan's Leaf was once a leading electric car globally, the company fell behind other automakers in the electric technology race. However, Nissan has committed to going all-electric in Europe by 2030 and will proceed with this transition in the UK, despite the government's decision to postpone the ban on petrol and diesel cars until 2035. A spokesperson for Nissan declined to comment on rumors and speculation.