Nissan unit scraps plan to make EV powertrains in UK, Nikkei says - Finance news and analysis from Global Banking & Finance Review
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Nissan unit scraps plan to make EV powertrains in UK, Nikkei says

Published by Global Banking & Finance Review

Posted on May 24, 2026

1 min read

· Last updated: May 24, 2026

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Nissan's JATCO Scraps UK EV Powertrain Plans Following Weak Demand in Europe

JATCO's Cancelled Sunderland EV Powertrain Project

Background and Initial Investment Plans

TOKYO, May 24 (Reuters) - Nissan Motor subsidiary JATCO has scrapped its plan to make electric vehicle (EV) powertrains in Sunderland, Britain, in light of sluggish demand for Nissan's EVs in Europe, the Nikkei business daily reported on Sunday.

In January 2025, JATCO announced a plan to invest 48.7 million pounds ($65.39 million) to make up to 340,000 units a year of EV powertrains that integrate the motor, inverter and reducer at a Sunderland plant for Nissan.

Nissan's Global Sales Challenges

Later that year, however, Nissan, badly damaged by weakening sales in the U.S. and China, said it will cut the number of its auto production plants to 10 from 17 and conduct a review of its powertrain factories.

Company Response and Further Details

No one was immediately available for comment at Nissan outside regular business hours, and a query submitted via JATCO's website has yet to receive a response.

($1 = 0.7448 pounds)

(Reporting by Kiyoshi Takenaka; Editing by Kim Coghill)

Key Takeaways

  • JATCO scrapped its Sunderland EV powertrain project amid sluggish European EV demand, reversing a January 2025 £48.7 million investment to build up to 340,000 powertrains annually (electrive.net)
  • Nissan is restructuring in Europe—consolidating the Sunderland plant onto one production line and exploring options to partner with a Chinese automaker on the freed-up line (carscoops.com)
  • Despite Nissan’s broader electrification goals and strong hybrid/electric crossover performance in Europe—e.g. 45% of FY2024 sales were electrified—overall EV momentum remains volatile, prompting a shift in investment priorities (easternwestern.co.uk)

References

Frequently Asked Questions

Why did JATCO cancel its EV powertrain production plan in the UK?
JATCO canceled its UK EV powertrain plan due to sluggish demand for Nissan electric vehicles in Europe.
How much was JATCO planning to invest in the Sunderland plant?
JATCO announced a planned investment of 48.7 million pounds ($65.39 million) in the Sunderland plant.
What was the intended annual production capacity for EV powertrains in Sunderland?
The Sunderland plant was intended to have a production capacity of up to 340,000 EV powertrains a year.
What other changes has Nissan made to its global operations?
Nissan said it will cut the number of its auto production plants to 10 from 17 and review its powertrain factories.

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