Marque invests $4b in UK

Nissan will manufacture three new models of electric vehicles (EVs) in the UK as part of a NZ$4.15 billion investment led by the company.

The yet-to-be-named cars will be built at its plant in Sunderland. It will require a third “gigafactory” to supply batteries to add to one in operation and another under construction near to the facility. 

The Chinese-owned battery company AESC is in negotiations with Nissan over building the third gigafactory nearby.

Nissan hasn’t revealed the size of the government subsidy for its investment, although there were discussions for significant support in return for assurances that battery production would remain in the UK.

The new cars will replace the plant’s three current models – the Leaf, Juke and Qashqai. Two will be crossovers while the Leaf’s replacement will be a smaller compact car.

The announcement confirms Sunderland’s position as the UK’s largest EV factory and will give its 6,000 workers a central role in the future of the country’s automotive industry. 

The British car industry has struggled with uncertainty after the Brexit vote in 2016 and global disruption to semi-conductor computer chip supplies because of the coronavirus pandemic. 

However, it has fared better in recent months with investment announcements from India’s Tata, which will build a factory to supply Jaguar Land Rover with batteries, and Germany’s BMW, which is upgrading its plants to make electric Minis.