SUNDERLAND (AFP) – Japanese auto giant Nissan announced Friday it would invest up to GBP2 billion in United Kingdom (UK) electric car manufacturing, which the government touted as a sign of confidence in the sector.
Nissan said it will produce electric models of two best-selling cars, Juke and Qashqai, at its facility in Sunderland, northeast England, which is its biggest factory in Europe, building on UK net zero plans to switch away from dirty fossil-fuel vehicles.
The carmaker will plough GBP1.12 billion (USD1.4 billion) into its UK operations and wider supply chain for research and development and manufacturing of the two new models, it added in a statement.
That will also spark further investment in infrastructure projects and the supply chain, including another electric car battery factory, bringing total investment to as much as GBP2 billion (USD2.5 billion).
Nissan’s investment will support its UK workforce of 7,000 employees – and 30,000 jobs in the nation’s broader supply chain.
“Exciting, electric vehicles are at the heart of our plans to achieve carbon neutrality,” said Nissan president and chief executive officer Makoto Uchida.
“With electric versions of our core European models on the way, we are accelerating towards a new era for Nissan, for industry and for our customers.”
Uchida declared in September that there was “no going back” on the group’s electrification plans as it aims for 98 percent of European sales to be electric vehicles by 2027.
The news comes as Britain looks to take a leading role in the production of electric cars as companies and governments shift away from high-polluting automobiles.
The UK government confirmed Friday that it has awarded GBP15 million of funding towards a collaborative research and development project for zero-emission vehicles led by Nissan.
“Nissan’s investment is a massive vote of confidence in the UK’s automotive industry, which already contributes a massive GBP71 billion a year to our economy,” said British Prime Minister Rishi Sunak, who will attend a formal announcement at the site later.
“This venture will no doubt secure Sunderland’s future as the UK’s Silicon Valley for electric vehicle innovation and manufacturing.
“Making the UK the best place to do business is at the heart of our economic plan.”
