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HomeBusinessNissan will spend £2bn in Sunderland on electric Qashqai, Juke, and Leaf

Nissan will spend £2bn in Sunderland on electric Qashqai, Juke, and Leaf

  • Nissan’s £2 Billion Investment
  • Strategic EV Focus
  • Tariff Impact Warning

This morning, Nissan announced a £2 billion investment in the United Kingdom. This investment will enable the company to continue manufacturing the next-generation Leaf at its Sunderland facility and produce two new electric vehicles (EVs).

The 1986-founded North East factory will create the all-electric Qashqai and Juke crossovers.

Nissan plans a “direct investment of up to £1.12 billion,” with partners including battery maker AESC supporting the shift.

It is presumed that the comprehensive financial package, which will additionally finance the construction of a battery manufacturing “gigafactory,” comprises substantial government support. However, the precise details of this support remain undisclosed.

Strategic Positioning and Future Vision

The investment will support tens of thousands of North East and UK supply chain jobs. Additionally, it will bolster the infrastructure of the company’s EV36Zero initiative.

Today, Nissan President and CEO Makoto Uchida informed colleagues at the Sunderland facility of the company’s intentions: “Our strategy to attain carbon neutrality is centered around electric vehicles, which we find to be both exciting and ambitious.”

“By introducing electric versions of our most popular European models, Nissan, the automotive industry, and our customers are swiftly progressing into a new era.”

“The EV36Zero initiative centers our future vision on our Sunderland plant, which has historically been the largest automobile factory in Britain.”

Our UK team will develop, engineer, and produce future vehicles, moving Nissan in Europe toward an electric future.

This project will cement Sunderland’s status as the UK’s electric vehicle Silicon Valley. This was according to the Japanese corporation.

The investment will position the automaker strategically to increase production of electric vehicles in the coming years, in line with its objective of discontinuing the sale of new models powered by internal combustion engines by the conclusion of the current decade.

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In September, shortly after Prime Minister Rishi Sunak postponed the prohibition on new gasoline and diesel engines by five years to 2035, Mr. Uchida announced that beginning in 2030, the company will only sell new electric vehicle models in Europe.

Mr. Sunak, commenting on today’s announcement, stated, “Nissan’s investment is an enormous vote of confidence in the automotive industry of the United Kingdom, which already contributes an enormous £71 billion annually to our economy.”

This project will cement Sunderland’s status as the UK’s electric vehicle Silicon Valley.

“Our economic strategy is centered on making the United Kingdom the best place to conduct business.” We remain committed to supporting companies such as Nissan in their efforts to establish a more substantial presence in the United Kingdom while making judicious long-term choices for a more promising future.

The company will allocate a portion of the total investment to construct a new battery manufacturing facility in the United Kingdom.

AESC, owned by Chinese company Envision, supplies Nissan with batteries from its large Sunderland battery complex.


It disclosed blueprints for a second gigafactory dedicated to battery production in 2021. A location near Nissan’s vehicle assembly facility is carrying out this endeavor.

Situated adjacent to the Sunderland facility, the supplier park will be the site for constructing the third factory.

The duo will spend a combined £3 billion on new electric vehicles and batteries.

Tariff Challenges and Industry Impact

Nissan can avoid the possibly high trade taxes linked with the’regulation of origin’ applied after Brexit on January 1. The trade association warns that these taxes might raise electric vehicle prices by tens of thousands of pounds.

Electric vehicle exports between the UK and EU will be taxed 10% in 2025. This is per rule of origin if 45% of their value is not domestic.

With batteries constituting the most significant portion of EVs’ total cost. Other British automakers will need help to comply with the tariff’s regulations to circumvent the 10% increase.

This will raise the average UK price of European-made electric cars (EVs) by £3,400, according to the SMMT. Similarly, UK-built models sold on the continent will incur a £3,600 price increase due to the tariffs.

SMMT CEO Mike Hawes stated that the decision demonstrates the attractiveness of the automotive manufacturing sector in the United Kingdom.

“This new announcement from Nissan, which follows the recent commitments of billions of dollars by other manufacturers and the support of the UK government, demonstrates that the United Kingdom is an increasingly competitive location for the production of electric vehicles.”

“It is phenomenal news for the organization, its employees, the area, and the supply chain of the United Kingdom. It will stimulate economic expansion and decarbonization throughout the country.”

Government Support and Economic Growth

Nissan said Friday that the Government will fund the Cranfield, Bedfordshire Nissan Technical Centre with £15 million. This funding aims to enhance its technical capabilities and advance electric vehicle (EV) research and development.

“Today’s news is an enormous vote of confidence in the British economy, just days after we confirmed the most generous investment tax reliefs in the western world,” Chancellor Jeremy Hunt said in Nissan’s official statement.

Nissan’s longstanding presence in Sunderland as a manufacturer of automobiles demonstrates the tangible outcomes of our business support: the establishment of tens of thousands of employment and the consolidation of the United Kingdom’s position as the eighth largest producer globally.

In his Autumn Statement, Mr. Hunt announced on Wednesday. He announced the indefinite extension of a tax break for enterprises investing in new equipment.

Business Secretary Kemi Badenoch stated, “Nissan’s investment in Sunderland reaffirms the success of the government’s strategy for the automotive industry.”

“The forthcoming advanced manufacturing plan will support thousands of jobs and stimulate growth throughout the United Kingdom by capitalizing on this deal and other recent major investment victories for the UK automotive industry.”

The Government will outline in the plan how it will incentivize manufacturers to invest in the United Kingdom.

Julie Elliott, a labor representative for Sunderland Central, described the investment as a “bright future” for the city.

She stated, “Today’s decision by Nissan regarding the Sunderland plant is a tremendous vote of confidence.”

“I am pleased to see that the plant maintains its stellar reputation for green technology.”

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