Nissan is looking at ways to secure production at its Sunderland plant amidst global cuts and that could include joint production with a Chinese EV partner.
Nissan’s new CEO Ivan Espinosa has indicated that the carmaker’s Chinese joint venture partner Dongfeng Motor could assemble cars in the UK at the Nissan Sunderland plant. Espinosa was speaking at the recent Future of the Car summit hosted by the Financial Times (FT).
The comments come after Espinosa announced an aggressive cost-cutting turnaround plan that includes the closure of seven Nissan assembly plants around the world. That does not include the Sunderland plant in the UK, which Espinosa said would continue as the carmaker’s sole manufacturing facility in Europe, and which will produce more electric vehicles.
According to the FT, Espinosa said he was open to the idea of Dongfeng producing its vehicles at the plant in Sunderland.
Nissan has been working with Dongfeng in China for 20 years and the carmaker is one option for Nissan as it seeks a strategic partner after merger talks with Honda. According to the FT, Espinosa said that Nissan “could leverage some of [its] joint work outside of China, inviting [Dongfeng] to come into our production ecosystems — everything is open.”
Regarding Nissan’s plans for increased electric vehicle (EV) production, Espinosa said the carmaker would be looking for UK government support through subsidies or measures to lower energy costs.
“Things like energy and a few other things are not as competitive as they are in other markets, and we need support from the government to remain competitive in the UK and keep our plant moving forward,” Espinosa is quoted as saying in the FT.
On May 28 Bloomberg reported that Nissan is aiming to raise more than $7 billion through a mix of debt issuance and asset sales to secure its operations. The funding hunt includes a $1.4 billion syndicated loan backed by UK Export Finance, as well as plans to issue up to $4.36 billion in convertible securities and high-yield bonds.
The Sunderland plant currently makes the Qashqai and Juke SUVs but Nissan has invested £2 billion ($2.67 billion) upgrading the facility to make the new generation Leaf EV this year, along with other battery EVs, including a replacement for the Juke.
In support of a local battery supply chain, on May 9, the UK announced a £1 billion funding deal for AESC to support its plans to build a battery gigafactory in Sunderland with annual capacity to supply 100,000 EVs. That is a six-fold increase on the UK’s current capacity, which the government said made the UK globally competitive and able to sell more British EVs at home and abroad, helping to achieve net zero targets.
“This investment in Sunderland will not only further innovation and accelerate our move to more sustainable transport, but it will also deliver much-needed high quality, well-paid jobs to the north-east, putting more money in people’s pockets,” said Rachel Reeves, chancellor of the exchequer.
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