Nissan to Invest £170 Million in UK Plant for New Hybrid SUV

LONDON — Japanese automaker Nissan has announced plans to manufacture a new hybrid small SUV for the European market at its Sunderland plant in the United Kingdom, committing an investment of £170 million ($229 million) to the facility.

The new model, the Kicks e-POWER, will be assembled alongside Nissan’s existing Qashqai, Juke and electric Leaf models at the Sunderland factory. The company has not yet announced a specific production start date for the new vehicle.

Nissan’s decision comes as the Japanese automaker undertakes a broader restructuring programme aimed at reducing costs and improving the efficiency of its global operations. The company has been reviewing production capacity, employment and future vehicle programmes amid challenging conditions in the international automotive market.

The Sunderland facility, Nissan’s largest car assembly plant in the United Kingdom, has faced uncertainty in recent months. In June, the company said it was considering leasing one of the plant’s production lines to Chinese automaker Chery, while the British government was reported to be in discussions with Nissan over possible support linked to continued investment at the site.

The new hybrid model is expected to provide additional production opportunities at the Sunderland facility as Nissan adjusts its European product strategy. The company has also been reassessing some electric-vehicle projects in Europe amid weaker-than-expected demand and cost pressures.

Nissan’s announcement also comes against the backdrop of a rapidly changing European automotive market, where manufacturers are balancing demand for fully electric vehicles with continued consumer interest in hybrid and other electrified models. Europe has remained a significant growth market for electric vehicles, even as manufacturers face intense competition and pressure to control costs.

British Business Minister Jonathan Reynolds welcomed Nissan’s investment, describing the decision as a significant commitment to the UK’s automotive manufacturing sector.

The investment is expected to strengthen the role of the Sunderland plant within Nissan’s European manufacturing network while supporting continued production of vehicles for the regional market.