Nissan's Sunderland Plant Secures Future with Electric Vehicle Hub and Battery Production

Strategic Insights -

The recent announcement that Nissan is to establish a flagship Electric Vehicle (EV) Hub and build new batteries and another electric car in Sunderland has brought an end to speculation over the impact of Britain's decision to leave the EU on the factory. Prime Minister Boris Johnson's visit to the plant underscores the significance of this development, which comes as a relief to the city and the UK economy. The decision to create an Electric Vehicle Hub and produce new batteries is a testament to Sunderland's importance in the automotive industry, and the city's reputation as a hub for innovation and manufacturing.

Key Takeaways:

  • The Nissan Sunderland plant has secured its future with the establishment of a flagship Electric Vehicle (EV) Hub and the production of new batteries and another electric car.
  • The decision marks the end of speculation over the impact of Britain's decision to leave the EU on the factory, which was a major concern in the aftermath of the Brexit vote.
  • Sunderland was a key battleground in the 2016 EU referendum, with the city voting to leave the EU by a margin of 61% to 39%.
  • Nissan chairman and CEO Carlos Ghosn expressed support for the UK remaining in the EU, stating that stability is more positive than a collection of unknowns.
  • The company and the government denied making a "sweetheart deal" to secure the plant's future, with Business Secretary Greg Clark stating that there was no chequebook involved.
  • However, it was later revealed that the government had offered Nissan up to £80 million to build new models in Sunderland.
  • Boris Johnson has remained tight-lipped about government support for the plant, stating that the level of public money used is "confidential".
  • Brexit continued to cast a shadow over the future of Nissan in Sunderland until late 2020, with Carlos Ghosn stating that investment plans would be put on hold due to uncertainty over the UK's trading relationship with Europe.
  • European chairman Gianluca de Ficchy warned that a no-deal Brexit could make Nissan's business model unsustainable, citing the potential for 10% tariffs on exports to the EU.
  • The agreement of a post-Brexit trade deal between the UK and the EU has given the plant a competitive advantage and secured the future of thousands of jobs across Europe.

Statistics:

  • 61% to 39% was the margin by which Sunderland voted to leave the EU in the 2016 referendum.
  • 70% of Nissan's production in the UK is exported to the EU.
  • £80 million was the maximum amount of support offered by the government to Nissan to build new models in Sunderland.
  • 10% tariffs on exports to the EU were cited by European chairman Gianluca de Ficchy as a potential threat to Nissan's business model.
  • Thousands of jobs across Europe were secured by the agreement of a post-Brexit trade deal.

Sources:

  • Sunderland Echo - "How Sunderland's Brexit count rocked the world and Lindsay Lohan"
  • Sunderland Echo - "Nissan to build new electric model and huge battery plant in Sunderland as £1billion birthday present"
  • Sunderland Echo - "Theresa May hails Sunderland Nissan Qashqai and X-trail news symbol hope successful Brexit"
  • Sunderland Echo - "No-deal, no Nissan: Sunderland campaigners' message to government in Brexit demo"