Nissan eyes Sunderland plant for Chinese car production amidst restructuring plan

Nissan’s new chief executive, Ivan Espinosa, has indicated that the company is considering using its Sunderland plant in the UK to produce vehicles for Chinese partner, Dongfeng.

This announcement comes as Nissan undertakes a significant restructuring effort following substantial financial losses, which includes plans to close seven factories and reduce its global workforce by 20,000.

While Nissan is implementing these drastic cost-cutting measures, Espinosa has confirmed that the Sunderland plant, a major manufacturing hub employing 6,000 people, is not among those slated for closure. The Sunderland plant is Nissan’s only European factory and the UK’s largest car manufacturing facility.

Nissan has recently invested £1.12 billion in the Sunderland plant to support the production of two new electric models. Additionally, its battery supplier, AESC, secured £1 billion in government funding for a new battery plant in Sunderland.

However, the Sunderland plant has been operating below its full capacity for several years. In 2024, it produced 282,000 cars, a 14% decrease from the previous year, and significantly less than its 600,000-unit capacity. To improve the plant’s profitability and increase production volume, Nissan is exploring options to collaborate more closely with Dongfeng.

Espinosa stated that “everything is on the table” regarding the possibility of Dongfeng producing vehicles at the Sunderland plant. This openness to collaboration is part of Nissan’s broader strategy to enhance its partnership with Dongfeng, with whom it has been working in China for over two decades.

Espinosa suggested that Nissan could “leverage some of our joint work outside of China, inviting them to come into our production ecosystems.”

The potential for a Chinese state-owned entity to produce cars in the UK could be controversial though. Nissan is also seeking support from the UK government, including subsidies and measures to reduce energy costs, to enhance the plant’s competitiveness. Espinosa emphasized that the company needs government support to “remain competitive in the UK and keep our plant moving forward.”