Nissan has reportedly warned the UK government that its Sunderland plant could close if the UK is excluded from new EU 'Made in Europe' manufacturing rules. The proposals, under the Industrial Accelerator Act (IAA), would limit public subsidies for electric vehicles to those assembled in the EU, potentially locking UK-made cars out of key incentives.
The UK automotive lobby group, the Society of Motor Manufacturers and Traders (SMMT), expressed 'grave concern' over the plans, warning they could damage the £70bn annual cross-channel trade. Mike Hawes, SMMT chief executive, said the IAA would 'effectively put UK manufacturers at a systemic competitive disadvantage' and may breach the EU-UK trade agreement.
The Sunderland plant, Britain's largest car factory employing 6,000 people, is operating below capacity due to lower demand. While Nissan declined to comment on the closure threat, a source indicated the company has concerns about rules on corporate fleet procurement and small EVs that could exclude UK-based firms.
The German car industry body VDA also raised objections, warning protective measures could raise costs and trigger countermeasures. A European Commission spokesperson said the IAA is open to the UK for public procurement, but financial support for corporate vehicles would be limited to EU-made models. The UK government said it is engaging with the industry and business secretary Peter Kyle recently visited Brussels to argue for full UK inclusion.
