Nissan announced plans to invest £170 million in manufacturing a new hybrid SUV model, known as the Kicks, at its Sunderland facility in northern England. The factory, which employs 6,000 workers and represents Britain’s largest automotive manufacturing plant, has been operating at 50% capacity. The Kicks will be the fourth vehicle model produced at the site, joining the Qashqai, Juke, and Leaf currently manufactured there, though the Kicks has not previously been built in Europe despite sales in over 70 markets globally.
The announcement carries a significant condition regarding UK regulatory policy. Nissan’s regional head Massimiliano Messina indicated that the investment is contingent upon the government amending its Zero Emission Vehicles mandate, which currently requires manufacturers to ensure an increasing percentage of their annual sales are zero-emission vehicles, with targets reaching 80% by 2030. The government is currently consulting on reducing this target to potentially 50% by the end of the decade, with the consultation period extending into late October.
Messina stated that Nissan is actively advocating for the lower emissions target and expressed confidence the adjustment would occur. He noted the investment would not generate new employment but rather secure and maintain existing positions at the facility. Additionally, Nissan is negotiating with Chinese carmaker Chery to share production capacity at the Sunderland plant, an arrangement announced earlier this year that could help operate the facility closer to full capacity.
The announcement comes amid broader pressures affecting the British automotive sector. The investment was received positively by government officials and industry representatives, with Business Secretary Jonathan Reynolds characterizing it as validation of UK manufacturing capabilities. However, Nissan is also engaged in separate discussions with European authorities regarding the EU’s “Made in Europe” requirements, which the company has warned could necessitate Sunderland’s closure if implemented as currently drafted. The company has expressed strong advocacy that the UK remain included in relevant regulatory frameworks.
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