Nissan unit scraps 340,000 EV powertrain production in UK

    JATCO cancels GHS 860 million investment due to weak European electric vehicle demand.

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    JATCO, a Nissan subsidiary, has cancelled plans to build electric vehicle (EV) powertrains in the United Kingdom. The company originally intended to produce 340,000 units annually at its Sunderland facility. This reversal follows weak demand for EVs across Europe and Nissan's broader decision to reduce its global production footprint.

    JATCO had announced a 48.7 million pound investment in January 2025 for this project, equivalent to approximately GHS 860 million. This investment was intended to establish capacity for motors, inverters, and reducers. These components would have supplied Nissan’s European vehicle lineup, directly supporting the company's regional electrification strategy.

    This move fits into a larger restructuring effort by Nissan, prompted by declining sales in key markets like the United States and China. Nissan previously confirmed a plan to cut its global auto production plants from 17 to 10. This consolidation includes a thorough review of all its powertrain factories worldwide, affecting investment decisions like the one in Sunderland.

    The Nikkei newspaper first reported the cancellation of JATCO’s UK plans. Neither Nissan nor JATCO offered immediate official statements on the report. However, industry observers expect Nissan to provide further details during its next quarterly earnings update set for August 7.

    The low demand for Nissan’s electric models specifically in the European market drove this decision. The scrapped production capacity represents a significant portion of the automaker’s previous regional electrification ambitions. This setback highlights the challenges facing the automotive industry as it transitions to electric vehicles amidst fluctuating consumer interest.

    The cancellation carries implications for the UK automotive sector and its push towards becoming an EV manufacturing hub. It also signals cautious investment strategies by major global automakers in markets experiencing slower EV adoption. Stakeholders will watch Nissan’s upcoming earnings report for clarity on its revised global production and electrification targets.

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