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Nissan has started production of its new Leaf electric vehicle at its Sunderland plant, backed by the Japanese group’s £450mn investment, breathing new life into the country’s largest car factory.
The future of the Sunderland factory came into sharp focus earlier this year as the struggling Japanese carmaker unveiled plans to shut down multiple plants globally as part of its turnaround plan.
The third-generation Leaf, which offers a range up to 386 miles, qualified for the full £3,750 discount under the UK government’s new subsidy scheme intended to boost sales of EVs, and has a starting price of £32,249.
Despite being a pioneer in electric vehicles with the launch of the first Leaf in 2010, Nissan has come under heavy pressure globally from sluggish sales, an outdated product line-up and falling demand in China.
To improve its financial performance, it is in the midst of a massive restructuring programme involving plant shutdowns and a cut of 20,000 jobs.
Its chief executive Ivan Espinosa has said the Sunderland plant would not be part of the factory shutdowns but has called for more government support to remain competitive in the UK.
Nissan executives have signalled all options to increase Sunderland’s utilisation rate with Espinosa indicating the possibility of its Chinese partner Dongfeng using the facility to produce vehicles. The company has also held talks with other smaller-sized manufacturers in the UK about using the plant, according to people with knowledge of the discussions.
Nissan is one of the largest automotive employers in the UK with about 6,000 workers at its Sunderland factory, which supports another 30,000 jobs across the supply chain and where the company has invested £6bn.
In June, the car manufacturer said it planned to reduce headcount by 250 people at Sunderland through a voluntary redundancy scheme.
Earlier this year, its battery supplier AESC secured a £1bn funding package from the UK government for a new battery plant in Sunderland that will be used to produce Juke and Leaf electric models.
The new Leaf will be the third model to be produced at Sunderland and “the first new high volume electric car” to be produced in the UK since 2020, according to the Department for Transport.
Business and trade secretary Peter Kyle welcomed Nissan’s investment as “a huge vote of confidence in our economy”.
“This will strengthen the UK’s position as a global leader for manufacturing and as the destination of choice for investment,” industry minister Chris McDonald added.