Nissan Sunderland ‘safe’ as EVs secure plant’s future
Nissan’s new CEO has said that the company’s Sunderland factory will be spared from the swingeing cuts being made by the Japanese car maker.
Ivan Espinosa said this week that Nissan had “no intention” of shutting down its UK manufacturing operation and that “In Europe, we will strengthen our presence by assembling more electric models in Sunderland.”
His comments appear to provide relief for the 6,000 staff employed at the Sunderland factory, as well as those working in the wider supply chain who were left fearing for their future after Nissan announced plans to shut seven factories.
Sharing Nissan’s financial results for 2024-25, Espinosa revealed that the company made losses of £3.8 billion last year and announced a £1.3 billion cost-cutting drive. This includes slashing its manufacturing facilities from 17 worldwide to 10, and cutting 20,000 jobs.
He said the firm had “a mountain to climb” to recover from the losses, which have been driven by a slump in demand in major markets.
The latest cost-cutting strategy goes further than previously announced plans to axe 9,000 jobs globally and close three factories.
However, it appears that Sunderland’s position at the heart of Nissan’s European EV strategy will shield it from the cuts.
In March Nissan confirmed that the Sunderland plant would produce the next-generation Leaf, Juke and Qashqai EVs. Production of the new Leaf will begin later in 2025 with the previous hatchback being replaced by an all-new crossover vehicle. The Juke is due to arrive in 2026 as a rival to the Ford Puma Gen-E and Fiat 600e, followed by the first all-electric version of the best-selling Qashqai, possibly in 2027-2028.
Espinosa’s recent comments suggest that plan remains in place even as Nissan reconsiders its longer-term manufacturing strategy.
The future of Nissan Sunderland was also boosted earlier this month with an announcement of a £1bn investment in the nearby AESC battery factory, which will supply batteries for the new Leaf, Juke and Qashqai.
Last year Nissan and Honda, which has also struggled to compete with EV brands from China and Europe, announced plans to work closely on future EV technology. However, a planned merger between the two Japanese companies collapsed earlier this year after they could not agree on the future structure of the business.
