On Friday, Nissan will announce that it will build the electric versions of its Qashqai and Juke models at its plant in Sunderland, northern England, in a project expected to safeguard thousands of jobs. The carmaker will commit hundreds of millions of pounds to the project, Sky News reported on Wednesday. The British government is expected to provide guarantees, the report added. Prime Minister Rishi Sunak and Chancellor of the Exchequer Jeremy Hunt are involved in discussions with Nissan, it said.
The electric version of the two best-selling vehicles is part of a broader push by Nissan to become Europe’s leading maker of electric cars. The company has already committed to having an all-electric vehicle line-up in Europe by 2030. The move also aligns with the government’s plans to curb air pollution by phasing out petrol and diesel cars from 2025.
In September, Nissan said it would stop producing traditional internal combustion engine (ICE) cars in Europe from 2020 and focus on battery-powered vehicles. The move is part of a plan to sell more than 10 million electrified vehicles globally by 2022, including five new all-electric models. The new electric models will be built at the Sunderland factory, which already produces the Leaf and is building its EV360 battery factory.
Since the launch of Nissan’s first electric car, the Leaf, in 2011, staff at the Sunderland plant have received more than 2 million hours of training to ensure they have the skills needed for building the company’s new electric models. In addition, Nissan has invested PS500m in its Sunderland plant and created a team dedicated to manufacturing the firm’s new electric vehicles.
As well as working with battery partner Envision AESC to ramp up production of power units, the new investment will see Sunderland produce more electric Qashqai and Juke models. The two vehicles are among Britain’s top-selling new cars, with over 42,700 sold last year.
In the autumn budget statement, Chancellor Jeremy Hunt said the government would make PS4.5 billion available to support strategic sectors, such as car manufacturing. The government said the funding would help keep the industry alive and ensure Britain retains its global competitiveness.
The UK government has previously held talks with several manufacturers about investing in battery plants — known as gigafactories — in the country to meet EU requirements on the proportion of car components made in the country. Nissan’s commitment is expected to help preserve 6,000 jobs at Sunderland.
It is still being determined how long the government funding guarantee will be in place or how many electric versions of the Qashqai and Juke will be produced at the Sunderland plant over time. Nissan’s reiteration of its commitment to all-electric vehicles in Europe and its commitment to Sunderland should send a strong signal to other manufacturers, particularly those looking to enter this market. They could face higher costs and longer lead times if they do not invest in local production.
