Politicians have described a multi-billion pound funding boost into the UK's largest car factory located in the North East as a "vote of confidence" in the region. But what is happening and what does it really mean? Here's what you need to know.

Nissan executives have today announced a huge £2bn funding boost for its Sunderland factory as the site aims to be fully electric by 2030. 

New models of vehicle and brand new factory through a huge boost of funding.

But, what does it actually mean for the region and what is the project about? Here's a breakdown of what you really need to know.

What is it?

Nissan today announced a string of announcements under the umbrella "3 is the magic number", detailing 3 interlinking pledges/moves that will boost the Sunderland factories output of electric vehicles.

Those 3 key lines are:

  • £3bn of total investment
  • 3 models of electric cars to be built at the site (Qashqai, Juke, and Leaf)
  • 3 total gigafactories to build the parts needed for the cars

This is all related to the EV36Zero facility which was announced in 2021 which is a hub for electric vehicle production.

Why are they doing this?

From what has been said by Nissan, it is understood that the company is investing significantly in electric vehicles in an effort to be more sustainable.

On Friday, CEO of Nissan Makoto Uchida said: “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.”

What will happen now?

The second gigafactory as part of EV36Zero is already being constructed - and soon a third will be built.

However, no information has been released about where the factory will be located and when it will be fully operational. 

New electric models of Qashqai, Juke, and Leaf cars will also begin to be assembled in Sunderland to phase out older models - but no date has been set yet.

Have the government funded the project?

No. The total funding for the project is £3bn, but that includes £1bn funding from July 2021 that was injected for the initial announcement of the EV36Zero electric vehicle hub.

As for the extra £2bn, £1bn came from Nissan themselves and the remaining amount was given to the giant by "partners".

At the launch on Friday (November 21) executives were pushed to name said "partners" but declined.

Nissan is still in talks with the government, so funding from them may be possible but has not been confirmed.

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Will Nissan Sunderland stop making diesel and petrol cars?

Yes, but no date was given when that last fuel car will roll off the production line - despite Nissan pledging to sell only electric cars in Europe in 2030.

Executives put this down to "market demand" as Nissan does sell vehicles across the globe as far as New Zealand where demand for fuelled vehicles may be higher than electric.