Nissan has announced a £ 1 billion plan to build electric cars in the UK.
The Japanese auto giant has announced a significant investment in its Sunderland facility that will create 6,200 jobs.
The announcement is a dramatic change in fortune for the factory, which faced questions about its future prior to the conclusion of a Brexit deal.
Instead, Nissan has chosen Sunderland as the location to build a new electric “crossover” car that will be exported to the EU.
Sunderland is the UK’s largest automotive plant, employing around 6,000 people and supporting up to 24,000 in the supply chain.
Nissan is pumping up to £ 423 million into the new, as yet nameless, model.
The government here has announced that sales of new diesel and gasoline cars will be banned from 2030 (file photo)
(Image: Empics Entertainment)
The company says it will create over 900 jobs at the plant and more than 4,500 in the supply chain.
The Sunderland factory opened 35 years ago this month.
It makes the best-selling Qashqai, Juke, and all-electric Leaf models.
However, production fell last year – partly due to the Covid crisis – by a fifth to 325,000.
Nissan had previously warned that the plant “will not be sustainable” if there is no Brexit deal.
Nissan’s drive to make the new Sunderland hub environmentally friendly will include the use of renewable technologies (file photo)
(Image: REUTERS)
Any delay in the delivery of parts abroad due to new customs controls could slow production, it was said at the time.
However, Nissan has now designated the Sunderland plant as the centerpiece of its new EV36Zero “hub”.
Plans also include a new £ 450 million gigafactory to be built next to the plant that will make batteries for up to 100,000 a year for Nissan vehicles.
The money comes from the Chinese Envision AESC, which also owns a smaller battery factory nearby and will create around 750 jobs.
A race to build the first UK gigafactory is underway.
Several gigafactories are already in operation in Europe, and a further 38 are planned.
The government here has announced that the sale of new diesel and gasoline cars will be banned from 2030.
Nissan’s drive to make the new Sunderland hub environmentally friendly will also include the use of renewable technologies.
It is working with Sunderland City Council on a £ 80 million project that involves building new solar parks to harness the sun’s energy.
Prime Minister Boris Johnson called the plans “a great vote of confidence in Britain and our highly skilled workers in the North East”.
He said, “Building on over 30 years of history in the region, this is a pivotal moment in our electric vehicle revolution and securing its future for decades to come.”
Nissan Chief Operating Officer Ashwani Gupta said, “This is a milestone for Nissan, our partners, the UK and the automotive industry at large.
“With the Nissan Leaf, the world’s first fully electric vehicle for the mass market, we have reached a new frontier.
“Now, Nissan and our partners will lead the next phase of the automotive industry as we accelerate towards full electrification and carbon neutrality.”
Economy Secretary Kwasi Kwarteng said the Nissan investment was “an excellent development” for the Northeast and told Sky News, “This is a really positive story for the UK. We were pleased. “
He did not rule out helping the company with state aid in the future: “We are in discussion with them, as we are with other companies”.
