Japanese carmaker Nissan announce major expansion of electric car production at its factory in Sunderland. The proposed plans will create 1,650 new jobs.
However, there are currently no further details of other production sites, or information about the vehicle.
As part of a £1bn investment, the new generation all electric model will be built at the Sunderland site, supporting thousands of jobs. An investment of up to £423m will go into producing Nissan’s electric vehicles in the UK, building on the success of the existing Leaf model. Manufacture of the new car will create 909 new jobs and over 4,500 in its UK supply chain.
In addition, the manufacturer’s partner, Envision AESC, will build an electric battery plant. Their factory will provide batteries to power up to 100,000 Nissan electric vehicles a year. It will create 750 new jobs, while 300 existing roles will remain safe. They hope the new plant is up and running by 2024, when levels of UK made components will increase. This is in line with the terms of the trade deal between the UK and EU.
Meanwhile, an investment at Vauxhall’s car plant at Ellesmere Port is not far away. Government aid could give security as Vauxhall’s parent company, Stellantis, commits to building a new model at the factory.
A ban on the sale of new cars and vans in the UK powered only by petrol or diesel comes in from 2030. However, some hybrids are still allowed.
Prime Minister Boris Johnson hails it a “pivotal moment”. He thinks the new gigafactory will drive down the cost of electric vehicles (EVs), making them more affordable for everyone.
Brexit
Ahead of the Brexit deal, Nissan warned of an uncertain future for the Sunderland plant if an agreement was not secured with the EU. Chief operating officer Ashwani Gupta said the business would become unsustainable.
However, Mr Gupta now says Nissan is using Brexit as an opportunity to move forward. The key factor for success has always been “trade friendly business conditions”, to keep them operating in both the UK and all of Europe.
He says the expansion plans would not be possible without the government’s financial support. But he would not divulge how much money they are contributing.
Mr Johnson says Nissan’s announcement is “a major vote of confidence in the UK”. When asked about the money, he said they would review “support as the project develops”. Full details will enter the public domain afterwards.
The UK has several factories, which produce up to 1.5 million vehicles, and the investment is a huge boost to the industry. But other parts of Europe are way ahead of us in electric vehicle production, so more investment is needed. We still have a big challenge ahead of us to keep up with the biggest ever revolution in car technology.
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