The move comes as Nissan undertakes a broader restructuring effort, including factory consolidation and a review of powertrain operations.
Nissan’s transmission subsidiary, Jatco, has reportedly abandoned plans to establish an electric vehicle (EV) powertrain manufacturing facility in Sunderland, UK, amid weaker-than-expected demand for Nissan’s EV models across Europe.
The project was originally announced in January 2025 and involved an investment of approximately $65 million. Jatco had planned to produce up to 340,000 EV powertrain units annually at the facility. The powertrains would combine key components such as the electric motor, inverter and reducer into a single integrated system for Nissan’s electric vehicles.
However, changing market conditions have prompted the company to reconsider the investment. Slower EV adoption in Europe, coupled with broader challenges facing Nissan, have reportedly led to the decision to cancel the project.
Nissan has been grappling with declining vehicle sales in several key markets, particularly the United States and China. The automaker has launched a major restructuring effort aimed at improving efficiency and reducing costs as it adapts to a more competitive global automotive landscape.
As part of that strategy, Nissan announced last year that it would reduce its global manufacturing footprint, cutting the number of vehicle production plants from 17 to 10. The company also said it would review its powertrain manufacturing operations to better align production capacity with market demand.
The decision to halt the Sunderland powertrain project reflects the growing pressure on automakers to carefully manage investments in electric vehicle infrastructure as EV market growth slows in some regions. While manufacturers continue to pursue electrification strategies, many are adjusting timelines and spending plans to match shifting consumer demand and evolving market conditions.
The move represents another example of how global automakers are reassessing expansion projects as they navigate economic uncertainty, changing regulatory environments and a more measured pace of EV adoption in key markets.
