Nissan is planning a £170 million investment to produce a new hybrid SUV, the Kicks, at its Sunderland facility. This move marks a strategic effort to stabilize the future of the UK’s largest car manufacturing plant, which currently supports 6,000 jobs in Tyne and Wear but has been operating at only half of its total capacity.
Massimiliano Messina, who leads Nissan’s operations in Europe, Asia, Africa, and Oceania, clarified that while the project will not create new roles, it is essential for “securing and maintaining” the existing workforce. The Kicks model, already sold across more than 70 global markets, will become the fourth vehicle manufactured at the site, joining the Qashqai, Juke, and Leaf.
The investment is conditional, however, on the UK government amending its Zero Emission Vehicles (ZEV) mandate. Under current regulations, manufacturers must hit escalating annual targets for zero-emissions car sales, reaching 80% by 2030. Following significant industry pushback, ministers are consulting on a potential reduction of these targets to 50% by the end of the decade.
Messina emphasized that while the company remains in discussions with officials, the investment hinges on these policy adjustments. “Of course we’re going to keep discussing with the UK government because large part of this is subject to the ZEV mandate amendment,” he noted, expressing confidence that a revision would be finalized.
Business secretary Jonathan Reynolds welcomed the news, describing the project and the introduction of the new hybrid model as “a huge vote of confidence in the UK’s manufacturing expertise and automotive future.” This development arrives shortly after Jaguar Land Rover signaled plans to cut 4,000 jobs, providing a much-needed lift to the British automotive sector, which has faced mounting pressure from high energy costs, Chinese competition, and US tariffs.
Additionally, Nissan is pursuing a production-sharing agreement with the Chinese carmaker Chery to help restore the Sunderland plant to full capacity. Messina confirmed he is applying both internal and external pressure to finalize the arrangement first announced in June, stating, “We are ready to go. We are waiting just that Chery finalises volume and lineup.”
Separately, Nissan is engaging in lobbying efforts with Brussels regarding “Made in Europe” regulations. The company has warned that these rules, which restrict subsidies and public procurement to vehicles manufactured within the bloc, could potentially force the closure of the Sunderland factory. Messina stressed that the company is working to ensure the UK remains integrated into its European supply chain.
The broader UK automotive landscape continues to evolve, with London black cab manufacturer LEVC announcing that its next-generation taxi—replacing the 2018 all-electric TX range—will launch next year from its Ansty factory. Meanwhile, McLaren recently declared a £500 million investment into its UK operations, encompassing a new facility, the creation of 1,000 jobs, and the development of its first SUV.
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, lauded the Nissan investment as “a major boost for Nissan Sunderland, the thousands of highly skilled jobs it supports and the wider local supply chain.” The report also notes that 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, under the ZEV mandate. The report also notes that 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, but after heavy lobbying pressure from manufacturers. The report also notes that 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.”. The report also notes that 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.”. The report also notes that the company has previously said that it could be forced to close Sunderland if the rules go ahead as currently drafted. The report also notes that “There are good indications that this will be achieved.
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