Nissan Unit scraps UK electric vehicle powertrain plan

JATCO has scrapped plans to build EV powertrains in the United Kingdom due to weak demand for EVs across Europe. The move follows Nissan’s decision to reduce its global production footprint.

The NISSAN MOTOR CO LTD, a subsidiary originally intended to produce 340,000 units annually at its Sunderland facility. This reversal signals a deepening retreat for the Japanese automaker as it scales back global production capacity.

JATCO initially announced a 48.7 million pound ($65.39 million) investment in January 2025 to build integrated EV powertrains. The project was designed to supply motors, inverters, and reducers for Nissan’s European lineup. The Nikkei reported that these plans are now cancelled.

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The decision follows a broader restructuring at Nissan after sales weakened in the United States and China. 

Nissan previously confirmed it will reduce its global auto production plants from 17 down to 10. This consolidation includes a comprehensive review of all powertrain factories.
Low demand for Nissan’s electric models in the European market drove the decision to halt the Sunderland expansion. Neither Nissan nor JATCO provided immediate comment on the report during the evening. The scrapped capacity represents a significant portion of the automaker’s previous regional electrification strategy.
Nissan is expected to provide further details on its global plant consolidation during its next quarterly earnings update on August 7.
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