Electric versions of the Nissan Qashqai and Juke, with an investment of $2.5 billion in Britain
Nissan will pump £1.12 billion ($1.4 billion) into its British factory to produce electric versions of two of the company's models, providing a boost to the country's auto industry and to a UK prime minister desperate to attract foreign investment.
The Japanese automaker said that its plans to produce electric versions of the Qashqai and Juke cars produced at its factory in Sunderland, northeastern England, will require total investments of up to two billion pounds ($2.5 billion), including a third battery factory in Britain and infrastructure projects, and added that Its partners will help with financing.
The Nissan Qashqai was the best-selling car in Britain during 2022.
The project is expected to receive support from the UK government.
Nissan has built its electric LEAF model in Sunderland for years and will continue to do so with batteries supplied by a small factory on site.
Battery station with Chinese partner
In 2021, the company announced a $1.4 billion investment to build a second 9 GWh battery plant in Sunderland with Chinese partner Envision AESC, a manufacturer of lithium-ion batteries for electric vehicles.
The company's announcement comes just a few days before the Global Investment Summit held by British Prime Minister Rishi Sunak, where he will try to revive interest among foreign companies, which has declined in Britain since the vote to leave the European Union in 2016.
“Making the UK the best place to do business is at the heart of our economic plan,” Sunak said in a statement on Friday.
Nissan did not comment on the value of any support or guarantees provided by Britain.
Support jobs and supply chain
“Government support is always important,” Alan Johnson, Nissan’s senior vice president of manufacturing and supply chain, told BBC Radio. “Discussions are ongoing with the government (and are not over yet).”
Sunak will host Nissan president and chief executive Makoto Uchida at the summit next week.
Nissan's investment will help support jobs for 7,000 workers in Sunderland and 30,000 people in the supply chain, and also expands the company's presence in Britain, which dates back to 1986.
For the Japanese company, Britain is a key hub, and its 2021 battery investment was a show of confidence when other foreign investors were shunning the UK after Brexit led to years of uncertainty over the country's trade relations.
Sunak, who became prime minister a year ago, has had some success in changing that.
Tata Motors Indian investments
The Nissan deal comes a few months after the Indian company Tata Motors announced that it would invest 4 billion pounds ($5 billion) in an electric car battery factory in the United Kingdom to supply its Jaguar Land Rover factories.
Industry experts described the Tata battery plant as good progress, but say Britain needs more electric car battery production capacity to maintain a viable and growing car industry.
Nissan plans to offer fully electric cars only in Europe by 2030, and said it will announce the names of new electric car models and the timing of production launches at a later date.
The carmaker's latest investment in the UK comes despite Sunak's decision in September to postpone a ban on new petrol car sales for five years.
