Nissan’s new chief executive, Ivan Espinosa, confirmed that the company’s Sunderland factory in the UK will remain operational despite a sweeping global restructuring plan. The Japanese carmaker recently announced it would close seven factories and cut 20,000 jobs due to significant financial losses. However, Sunderland, which employs 6,000 people and is Britain’s largest car plant, has been spared. Espinosa reaffirmed plans to produce at least two new electric vehicle models at the site
Nissan Explores Dongfeng Collaboration to Boost Sunderland Output and Strategic Flexibility
To improve the underused capacity at Sunderland, Espinosa indicated Nissan is open to building cars for Dongfeng, its Chinese partner. The plant currently produces less than half of its 600,000 annual vehicle capacity, and collaboration with Dongfeng could boost output and profitability. Nissan and Dongfeng already have a manufacturing partnership in Wuhan, China. Espinosa suggested that their joint work could be expanded outside China by integrating Dongfeng into Nissan’s production network.
Nissan Keeps Sunderland Plant Alive with EV Plans and Possible Dongfeng Production DealEspinosa emphasized that “everything is on the table,” indicating Nissan’s willingness to consider partnerships, joint ventures, and investments from both carmakers and tech companies. However, he clarified that the company seeks to maintain its independence and avoid overreliance on any single partner. This strategic openness follows Espinosa’s warning of a potential £4 billion loss this year, exacerbated by tariffs imposed by former U.S. President Donald Trump.
Nissan Recalibrates Ambitions Amid Legacy Challenges and Growing Calls for Government Support
The recent restructuring marks a definitive end to the ambitious growth trajectory set by former CEO Carlos Ghosn, who once aimed for Nissan to become one of the world’s largest carmakers. Ghosn’s goal was to produce 8 million vehicles annually, a target far from the 3.1 million produced in 2024. Espinosa attributed some of Nissan’s current challenges to this overreach and said the company is now focused on recalibrating its operations to reflect more realistic goals.
Espinosa also stressed the need for government support, particularly to reduce the high energy costs faced by the Sunderland plant compared to European counterparts. His remarks echoed broader industry concerns, as leaders of Stellantis and Renault also urged the EU to extend the sales period for plug-in hybrids, which remain more profitable than fully electric vehicles. Renault’s CEO Luca de Meo advocated for measuring emissions over a vehicle’s life cycle rather than focusing solely on tailpipe emissions, which could favor hybrid models.
