WionDrive News Desk 
Japanese automaker Nissan is set to unveil plans for a 1 billion dollars investment to produce electric versions of its popular Qashqai and Juke models in Sunderland, northeastern England, according to media reports. The decision, expected to secure 6,000 jobs at Nissan’s largest European facility, comes with significant financial support from the UK government, potentially totaling hundreds of millions of pounds.
The move aligns with Britain’s ambition to be a key player in electric car production as the automotive industry pivots away from fossil-fuel vehicles. Prime Minister Rishi Sunak is anticipated to attend the announcement by Nissan CEO Makoto Uchida at the Sunderland factory.
While Nissan declined to comment on the reported investment, Finance Minister Jeremy Hunt had recently pledged GBP 4.5 billion for strategic sectors, including the auto industry.
This commitment to electric vehicle (EV) production is crucial for the future of the Sunderland facility, which is not only Nissan’s largest European plant but also hosts a dedicated electric battery plant nearby.
The decision to invest in EV production reflects the broader trend in the automotive industry and supports the UK’s goal of achieving net-zero carbon emissions by 2050. However, the government’s recent policy adjustments, including delaying the ban on petrol and diesel cars to 2035, indicate a balancing act between environmental objectives and the economic realities of the automotive sector.
Nissan’s announcement follows its earlier concerns about the Sunderland site’s future amid the uncertainty of a no-deal Brexit. However, the commitment was reaffirmed after the UK government secured a trade deal.
Despite the optimistic outlook, challenges remain for the UK’s car manufacturing sector. A recent warning from the nation’s car industry organisation highlighted a potential 10% increase in customs duties on electric cars crossing the Channel. This concern arises from the stringent requirements under the trade deal, where at least 45% of the value of vehicle parts must originate from the UK or the EU to be exempt from customs duties starting January 1, 2024.
One notable aspect of the challenge is the sourcing of electric car batteries, often originating from China. While the UK aims to establish its battery production, the reliance on imported batteries could impact the cost structure of electric vehicles.
Nissan’s significant investment in electric car production in the UK signals a strategic move in alignment with global trends toward sustainable transportation. The outcome of this venture will not only impact Nissan’s future in the electric vehicle market but also contribute to the broader landscape of the UK’s automotive industry and its role in the transition to electric mobility.
