Key insights
- JATCO, a Nissan subsidiary, has canceled plans to manufacture EV powertrains in Sunderland, UK, due to weaker-than-expected EV demand in Europe. This decision reflects broader restructuring efforts by Nissan to cut costs amid slowing sales and increased EV competition. While Sunderland remains a key hub, this adjustment signals a reassessment of EV investment plans by global automakers.
Investing.com -- Nissan Motor subsidiary JATCO has abandoned plans to manufacture electric vehicle powertrains at its Sunderland facility in the UK, Reuters reported, citing Nikkei as the news source.
The decision was prompted by weaker-than-expected demand for Nissan’s electric vehicles in Europe, which has weighed on investment decisions.
JATCO announced in January 2025 that it would invest 48.7 million pounds ($65.4 million) to build electric powertrains at the Sunderland plant.
The facility was expected to produce up to 340,000 units annually of integrated EV powertrains, combining the motor, inverter, and reducer into a single system.
The project was part of Nissan’s broader strategy to strengthen its electric vehicle manufacturing footprint in Europe and support future EV production at its UK operations.
The decision to cancel the investment comes after Nissan launched a sweeping restructuring program aimed at reducing costs and improving profitability.
The Japanese automaker has faced pressure from slowing sales in key markets, including the United States and China, while competition in the global EV market has intensified.
Last year, Nissan announced plans to reduce its global production network to 10 plants from 17 and review operations across its powertrain manufacturing business as part of a broader turnaround effort.
Sunderland remains a key manufacturing hub for Nissan. The company has previously committed to producing future electric vehicle models at the site and has partnered with battery maker AESC to support EV production in the UK.
Neither Nissan nor JATCO immediately commented on the report. Nissan was unavailable outside regular business hours, while a request submitted by Reuters through JATCO’s website had not received a response.
The move marks the latest adjustment by a global automaker as manufacturers reassess electric vehicle investment plans amid evolving market conditions and a more competitive industry landscape.