Published by Global Banking and Finance Review
Posted on January 16, 2025
(Reuters) - Japanese automaker Nissan's factory in Sunderland, UK is set to receive a supply of up to 340,000 electric vehicle (EV) powertrains annually from JATCO Ltd's new factory nearby, the latter said on Thursday.
The plant is scheduled to be completed in 2026, the automatic transmission manufacturer added, and is supported by a grant from the British government, which has set tough EV mandates for the UK auto industry.
Nissan, like other global legacy carmakers, has been grappling with competition from Chinese EV makers. The company is in the midst of talks to merge with another Japanese auto major Honda by 2026 and has planned cuts to jobs and global manufacturing capacities to reduce costs.
The company said in 2023 it would invest $1.4 billion in its Sunderland plant to build electric versions of two car models.
"Welcoming a key supplier to the North East of England provides a big boost to the efficiency of our supply chain," said Alan Johnson, senior vice president, manufacturing, supply chain and purchasing for Nissan Africa, Middle East, India, Europe and Oceania.
The 138,840 square feet facility with a 48.7-million-pound ($59.5 million) investment will create up to 183 jobs in the port city of Sunderland, said JATCO, which also has overseas production plants in Mexico, China and Thailand.
($1 = 0.8186 pounds)
(Reporting by Aby Jose Koilparambil and Yadarisa Shabong in Bengaluru; Editing by Janane Venkatraman and Vijay Kishore)
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