Nissan Sunderland plant set to increase production by a fifth 0

Nissan

Nissan have announced they are to increase production by a fifth at its Sunderland plant in an attempt to offset higher costs following the UK’s decision to leave the EU. The Japanese company will also double the amount of parts purchased from domestic sources.

Production will increase by 20% to around 600,000 vehicles per annum.

Nissan also stated that the number of electric vehicles produced will also be increased to meet the anticipated growth in demand from the UK and Europe.

The company’s plant in Sunderland could subsequently see an investment worth up to £14 million as a result.

Nissan intends to source up to 80% of the parts required from the UK – a rise of 40% – to protect itself from the possible higher import/export duties after Brexit.

The Sunderland plant is one of the largest in the UK and responsible for 507,000 of the vehicles produced in the UK each year.

This talk of investment should come as welcome news for Prime Minister Theresa May as she flies in for trade talks this week. Japanese officials are expected to tell her to take steps to end the ‘sense of crisis’ caused by Brexit.

Towards the start of 2017, Nissan announced its intention to build two new models – the new Qashqai and X-Trail – at the Sunderland plant after the UK Government had issued assurances that competitiveness would not be affected by Britain’s decision to leave the EU.

Nissan boss Carlos Ghosn was given assurances in the wake of the referendum last year, that his company would not suffer as a result of Brexit.

This saw the Government accused of negotiating a ‘sweetheart’ deal, a claim it denied despite the firm employing around 7,000 workers at the North East plant.

The Nissan investment comes in the wake of compatriots Toyota injecting £240 million into its single British factory earlier in the year. The money is being used to upgrade the plant in Burnaston factory.

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