“Three is the magic number” according to Nissan executives as they today (November 24) revealed a bumper package of investment now totaling £3bn to the region as they pledge to go 100% electric by 2030.
Electric versions of the Qashqai, Juke, and Leaf cars will be manufactured at Nissan's Sunderland factory – the company has today confirmed.
This comes two years after the giant invested £1bn into their EV36Zero electric vehicle hub in July 2021, which brings together electric vehicle manufacturing, renewable energy, and battery production.
That initiative is now set to be expanded totalling £3bn from Nissan itself and partners which will see a brand new, third gigafactory built which will be the size of 23 football pitches.
The site, which employs 6,000 people, saw the £2bn of extra funding from Nissan itself as well as from partners – none of which are known as the company are also “still in talks” to receive government support.
Following the announcement, Prime Minister Rishi Sunak and Chancellor Jeremy Hunt toured the Nissan factory and spoke to workers about its “proud history of car making” in the North East and what it means for the region.
Mr Sunak said: “Nissan’s investment is a massive vote of confidence in the UK’s automotive industry, which already contributes a massive £71 billion a year to our economy.
“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.
“We will continue to back businesses like Nissan to expand and grow their roots in the UK every step of the way as we make the right long-term decisions for a brighter future.”
Mr Hunt added: “This is a massive vote of confidence in the North East. Nissan is a company that could have invested anywhere in the world but they say their factory in the North East is as productive as any other.
“The North East should be really proud, I think this is a brilliant piece of news.”
CEO of Nissan Makoto Uchida also made an appearance at the announcement, setting out his vision for the company as the EV36Zero expansion gets underway.
Standing behind gleaming red, white, and blue models of the cars that are soon to be built on site, Mr Uchida was joined by Vice President of manufacturing in Sunderland Adam Penick and Sunderland City Council chief executive Patrick Melia who said the authority is “delighted” to be a part of the project.
Mr Penick opened the keynote, and said: “I would like to take this opportunity to pay tribute to our full team of 6,000 staff here in Sunderland whose manufacturing and engineering skill coupled with dedicated spirit has made today's announcement possible.”
Mr Uchida then took to the stage, affirming that “Nissan is proud to call Sunderland home”.
He added: “We have a vision of a cleaner, safer, and more inclusive world. A vision where your car can help your community to manage energy, and a vision where Nissan becomes a truly sustainable company that has a positive impact on the environment.
“EV36ZERO is our vision for the future of manufacturing. These new three models are enabling an investment of up to £3bn in our future. Today – three is the magic number.
“Nissan is making the future of electric mobility real.”
Mr Uchida was later asked whether further projects would be brought to Sunderland as well as what discussions with Prime Minister Rishi Sunak yielded that morning.
“We are not thinking about future projects yet,” he said.
“We are looking at the mid and long term and how we can sustainably grow in the UK. I welcome government policy – we have a very good relationship with them moving forward.”
However, whilst the new venture will protect 6,000 jobs at the site and has the possibility of creating more, a skills gap in recruiting workers from the North East in these highly specialised roles is an issue the company has not yet faced.
Senior vice president of manufacturing and supply chain management Alan Johnson admitted that recruiting new workers with the right criteria is “challenging”.
He said: “There are a lot of jobs out there in the North East. But, generational problems and getting people the right skills is challenging.
“We can see it coming from a way off, and we’re active. We have activities including a new experimental project at Sunderland College with 14 and 15-year-olds who complete two days of teaching a week with us to learn about manufacturing and engineering.
“But, I think this is something we need to see a lot more of, in order to make sure that not only us but whoever will be making the things we have planned will generate a lot of employment.”
When asked when the final petrol vehicle will leave the production line in Sunderland, executives stated that date is “unknown” as the company is basing that on “market demand” as they export many vehicles across the globe.
As the project gets underway, local reaction to the has been positive as it comes as a new investment zone focusing on manufacturing has been confirmed for the region.
Sunderland City Council chief executive Patrick Melia said: “The North East investment zone will build on the arc of innovation running through Northumberland, Sunderland and Durham with opportunities throughout the Tyne corridor.
“This investment by Nissan working with government and partners from the region vindicates our unwavering ability to drive the electric revolution and bring significant projects to fruition.”
Sunderland City Council Leader Graeme Miller has hailed the investment as a “vote of confidence” in the region.
He said: “Today’s announcement is fantastic news for Sunderland, the North East and the UK – building on our world-leading strengths in automotive and advanced manufacturing, creating high-quality jobs, growing our low carbon economy and further positioning us at the heart of electrification on a global stage.
“The strength of our partnership with businesses like these alongside our ability to work with Government is essential to the continued success of the sector, and the Investment Zone for the North East announced today means we can build on our track record by attracting further investment of this scale and significance.”
Sunderland Central’s Labour MP, Julie Elliott, added the investment meant the city had a “bright future”.
She said: “The decision by Nissan today is a great vote of confidence in the Sunderland plant.
“I am glad that the plant’s strong reputation for green technology continues.”
John McCabe, chief executive at the North East Chamber of Commerce, said investments such as Nissan’s “really highlight the North East’s huge potential”.
John McCabe, chief executive at the North East Chamber of Commerce, said investments such as Nissan’s “really highlight the North East’s huge potential”.
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He said: “The announcement of the production of new electric models at Nissan’s Sunderland plant is fantastic news for the North East.
“As the only carmaker in the country with a dedicated battery plant on-site, Nissan is perfectly positioned to place the region and the wider UK at the front of electric vehicle production and green innovation.
“Investments such as this really highlight the North East’s huge potential and we look forward to working with Nissan to provide support for the project.”
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