Nissan is said to be in advanced discussions with the UK Government regarding financial support for its Sunderland manufacturing facility. According to global news service Reuters, the Japanese automaker is negotiating backing in return for commitments to long-term investment at its Wearside plant. Grants, tax breaks, and subsidies are reportedly on the table in exchange for protecting jobs.
Potential Partnership with Chery
The news follows a recent announcement that Nissan is looking to partner with Chinese brand Chery, which owns marques such as Jaecoo, to build its models at Sunderland. This could see Chery vehicles rolling off the factory's production Line One, which was paused earlier this year amid significant restructuring across Nissan. Such a deal is set against widespread cost-saving measures at Nissan, which is closing several factories globally and shedding thousands of jobs, including some in Europe. These efforts are in response to hefty losses and intense competition from global rivals.
Importance of Sunderland Plant
Nissan's Sunderland plant employs 6,000 people and is widely regarded as one of the most productive in Nissan's global network. It has received significant investment in recent years, including funding to support production of the new generation electric Leaf, which began late last year, and a much wider multibillion-pound vision to make the factory a flagship site for electric vehicle manufacturing through the use of renewable energy and nearby battery production.
Recent Developments and Challenges
However, earlier this year it emerged that Nissan had decided not to produce drivetrains at the nearby Jatco factory, which was announced in early 2025 as the result of a £48 million investment plan including £12 million of funding from the Automotive Transformation Fund. About 80% of the Jatco facility's capacity was to be given over to Nissan products for use in building electric models. In recent weeks, car makers and MPs have called for the Government to bring forward a review of the Zero Emission Vehicle mandate, which legally requires rising sales of electric vehicles from manufacturers. Under the rules introduced in 2024 before being relaxed last year, car and van makers must make EVs 80% of the cars they sell by 2030, rising to 100% by 2035.
Nissan's Response
Nissan did not comment directly on the report of talks with the Government. But in a statement, a spokesperson said: "We are proud of our history in the UK including our manufacturing operations at our Sunderland Plant. We have a strong and collaborative relationship with the UK Government and look forward to continuing to work together moving forward."
