Nissan has said it will invest £170m to build a new SUV at its factory in Sunderland – but said the move was subject to the UK weakening its electric vehicle sales mandate.
The new hybrid model, the Kicks, is Nissan’s latest attempt to secure the future of the plant, which employs 6,000 people in Tyne and Wear and is Britain’s biggest car factory.
Massimiliano Messina, Nissan’s head in Europe, Asia, Africa and Oceania, said the move would not bring new jobs but was part of “securing and maintaining” jobs at the site, which has been running at 50% capacity.
The Kicks will be the fourth Nissan model produced at the Sunderland plant, which already makes the Qashqai, Juke and Leaf. It is already sold in more than 70 markets but has never been built in Europe.
The announcement is a boost to Britain’s automotive sector, which was last week hit by the news that Jaguar Land Rover will cut 4,000 jobs. Carmakers have come under pressure from US tariffs, competition from Chinese rivals and high industrial energy costs in recent years.
Jonathan Reynolds, the business secretary, said the investment and new car model was “a huge vote of confidence in the UK’s manufacturing expertise and automotive future”.
However, it also came with an apparent warning from Messina, who said: “Of course we’re going to keep discussing with the UK government because large part of this is subject to the ZEV [Zero Emission Vehicles] mandate amendment.”
The government is consulting on cutting the UK’s electric vehicle sales targets for manufacturers. Under the ZEV mandate, carmakers ensure a percentage of the cars they sell each year are zero-emissions, with the target rising each year to reach 80% by 2030.
But after heavy lobbying pressure from manufacturers, the government said last month that it was considering cutting that figure to as little as 50% by the end of the decade, which it is consulting on until late October.
When pressed on whether Nissan would still make the investment if the targets were not weakened, Messina said: “We try to assess always if this is more likely than unlikely.”
He added that the company was pushing for a cut to 50% of sales needing to be EVs. “I just want to think that this is done,” he said. “For me, yes, it’s going to happen.”
Nissan is separately in talks to share production with the Chinese carmaker Chery, which is looking to build its own cars in the UK, to bring the site closer to full capacity again.
Messina said he was putting “pressure internally and externally” to complete the deal which was announced in June. “We are ready to go. We are waiting just that Chery finalises volume and lineup.”
Separately, LEVC, the maker of London’s black cabs, said on Wednesday that it will launch its next-generation taxi model next year, built at its factory in Ansty, near Coventry. The Chinese company, owned by Geely, said the new taxi would replace the current all-electric TX range introduced in 2018.
Nissan is also lobbying Brussels over the EU’s “Made in Europe” rules, which would require cars to be built within the bloc to qualify for subsidies and public procurement.
The company has previously said that it could be forced to close Sunderland if the rules go ahead as currently drafted.
Messina said: “You might imagine how much time I’m spending on this to secure that this comes together in order to have Sunderland and the UK part of it.
“There are good indications that this will be achieved. We believe strongly, regardless what will be the outcome, that UK cannot be left anyway outside.”
Mike Hawes, the chief executive of the Society of Motor Manufacturers and Traders, said the investment was “a major boost for Nissan Sunderland, the thousands of highly skilled jobs it supports and the wider local supply chain”.
On Wednesday, McLaren announced it would invest £500m in its UK operations, including a new factory, 1,000 jobs and its first SUV.