Nissan has started production of its newest electric car Sunderlanda crucial step in the UK car industry's transition away from petrol and diesel.
The Japanese manufacturer will unveil the third generation Leaf on Tuesday, becoming the first mass-market battery electric car built in the UK. Nissan to date, 282,704 Leaf models have been produced at the North East England plant.
Nissan said it has invested more than £450 million into the production of the new Leaf, including more than £300 million directly into the company's UK operations. Chris McDonald, the industry minister, will visit the plant on Tuesday.
It is the UK's largest car plant, with 6,000 employees and a theoretical capacity to produce 600,000 cars a year. However, according to MarkLines, the factory produced just 284,000 units in 2024, amid a difficult period for European manufacturers.
Sales of the new Leaf will be important to securing future production in the rest of the plant. In 2023, Nissan said it will be I am considering the possibility of creating two more electric vehicles in Sunderland. The vehicles are being considered as replacements for the Qashqai petrol SUVs and Juke crossovers produced there, but Nissan has yet to make a final investment decision.
Promotion of the latest models will be vital to the future of the nearby battery plant, which is run by manufacturer AESC, which is majority owned by a Chinese company.
The Leaf investment comes at a time when Nissan is going through a painful process. closing seven factories and cutting 20,000 jobs worldwide. Nissan overexpanded in an attempt to become the world's largest automaker, but faced years of management turmoil and intense competition, including from new Chinese competitors.
Sunderland's stadiums will not be affected by the closure. But Nissan CEO Ivan Espinosa, tasked with turning the company around this year, said in May that the automaker consider producing cars in Sunderland for the Chinese company Dongfengits joint venture partner in the Chinese city of Wuhan.
Peter Kyle, Business Secretary, said: “Sunderland is the beating heart of the UK car industry and Nissan's investment is a significant commitment to the North East and a huge vote of confidence in our economy.”
Nissan vice president of plant manufacturing Adam Pennick added: “Our team takes great pride and excitement to build this brilliant car in Sunderland.”
The UK government has confirmed that the Leaf will qualify for the full £3,750 EV grant. The car will have a range of up to 386 miles per charge with a larger 75-kilowatt-hour battery.
