Nissan to 'axe production of new electric car' at Sunderland factory in latest blow to UK auto industry

Nissan is reportedly considering shelving the development of the new Qashqai model at its facility in Sunderland, just months after starting production of the new Leaf EV.

Reuters reports that the UK Government is in advanced talks with Nissan regarding financial support to confirm the Japanese carmaker's future at its Sunderland site.

Reports suggest that any funding for Nissan would be connected to producing new models or variants at the UK's largest car plant, in addition to protecting thousands of jobs.

Nissan remains the largest employer in Sunderland, with the facility employing around 6,000 members of staff.

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The Japanese brand's global restructuring plan includes selling or closing other factories, in addition to cutting around 15 per cent of its worldwide workforce.

Reuters claimed that five sources with knowledge of the discussions stated that the Government funding would be in return for a long-term commitment and investment.

It also states that Nissan has quietly halted development of a full electric version of the Qashqai, which is the brand's best-selling model in Europe.

GB News has contacted Nissan and the Department for Business and Trade for a comment.

The Qashqai is the fourth best-selling car in the UK, with more than 18,500 registrations, beating out the likes of the Vauxhall Corsa, Volkswagen Golf and Mini Cooper.

Data from the Society of Motor Manufacturers and Traders (SMMT) shows that Sunderland produced more than one-third of all cars made in Great Britain last year.

Nissan confirmed a £2billion boost to the Sunderland factory in November 2023, which was earmarked for the production of the third-generation Leaf, the Qashqai and Juke.

Production of the Nissan Leaf began in December last year, although the firm recently confirmed that it was closing one of its production lines.

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Speaking previously to GB News, a Nissan spokesperson said: "Under the Re:Nissan recovery plan, we have been taking decisive actions to enhance performance and create a leaner, more resilient business that adapts quickly to market changes.

"We have also announced that we will consolidate production from two lines to one at our Sunderland Plant as we assess future opportunities to secure full plant utilisation."

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