Nissan invests £170m to build new Kicks hybrid SUV in Sunderland

Nissan has announced a £170m investment to manufacture its new Kicks hybrid SUV at its factory in Sunderland, providing a major boost to Britain’s largest car manufacturing plant.

However, leadership has indicated that the long-term future of the project remains closely tied to potential changes in UK government policy regarding zero-emission vehicle targets.

The funding will bring the Kicks crossover to the Wearside facility for its European production debut, joining the Qashqai, Juke and Leaf on the assembly lines. While the move will not immediately create new jobs, it plays a vital role in securing and maintaining employment for the 6,000 workers at the site, which has recently been operating below full capacity.

Despite the positive announcement for the automotive sector, company executives have cautioned that a large part of the decision is subject to amendments surrounding the UK’s Zero Emission Vehicles (ZEV) mandate. Under the current mandate, manufacturers must ensure an escalating percentage of their annual sales comprise zero-emission vehicles, heading toward an 80% requirement by 2030.

Following heavy industry lobbying, the government is consulting on potentially lowering that target to 50% by the end of the decade. Massimiliano Messina, Nissan’s regional head, noted that ongoing discussions with the government are critical, expressing confidence that the targets will be adjusted.

Industry leaders have rushed to praise the investment. Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), described the injection of capital as “a major boost for Nissan Sunderland, the thousands of highly skilled jobs it supports and the wider local supply chain”.

Hawes added that the commitment serves as “another vote of confidence in UK automotive manufacturing with its world-class workforce, innovation and engineering excellence”. Business Secretary Jonathan Reynolds similarly hailed the project as “a huge vote of confidence in the UK’s manufacturing expertise and automotive future”.

As Nissan prepares to roll out the Kicks using its third-generation e-POWER hybrid tech, the manufacturer is also separately exploring potential production partnerships with Chinese carmaker Chery to push the Wearside plant closer to full capacity.