Nissan has announced a £170m investment to manufacture a new hybrid SUV, the Kicks, at its Sunderland factory. This move is intended to help secure the future of the plant, which is Britain’s largest car factory and employs 6,000 people in Tyne and Wear.
However, Nissan stated that this investment is conditional on the UK government weakening its electric vehicle sales mandate. Massimiliano Messina, Nissan’s head in Europe, Asia, Africa and Oceania, indicated that while the move would not create new jobs, it is crucial for “securing and maintaining” existing positions at the site, which has been operating at 50% capacity.
The Kicks will be the fourth Nissan model produced at the Sunderland plant, alongside the Qashqai, Juke, and Leaf. The government is currently consulting on potentially reducing the ZEV mandate’s target for zero-emission vehicle sales from 80% to as little as 50% by 2030, with the consultation running until late October.
Nissan is also in discussions to share production with Chinese carmaker Chery, aiming to bring the Sunderland site closer to full capacity. Additionally, Nissan is lobbying Brussels regarding the EU’s “Made in Europe” rules, which could impact the plant if implemented as currently drafted.