Nissan has reportedly halted development of a fully electric version of its bestselling Qashqai model, which was set to be manufactured at its Sunderland plant. The Japanese car giant quietly stopped work on the EV model at its North East plant last year, according to Reuters.
Background and Market Context
Nissan pioneered the crossover segment when it launched the Qashqai 16 years ago, triggering production of millions of vehicles. In 2022, it announced that the Qashqai would be equipped with its groundbreaking e-Power technology. However, the reports come as the group seeks to slim down its line-up and make cost cuts across the business, having endured a second year of losses as it posted a net loss of around $3.4bn.
It was back in 2023 that Nissan revealed its commitment to the production of new electric models at its Sunderland plant, a year after announcing plans for the Qashqai electric model and after it pledged that all of its new cars sold in Europe will be electric by 2030.
Job Cuts and Restructuring
The reports come a month after Nissan announced it was planning to cut hundreds of jobs across its European operations, and that it will be bringing together two existing product lines at its Sunderland plant into one. The Japanese automotive giant has been battling tough conditions in the global car making sector, with the firm citing tough competition from Chinese rivals and challenges amid the switch to electric vehicles when it announced a major global restructuring year. The Washington plant has, however, escaped the worst of the cuts and has recently been described as “central” to its operations.
Agreement with Chery
Meanwhile, Nissan struck an agreement earlier this month with Chinese automotive manufacturer Chery which could see it begin producing its vehicles at Nissan’s Sunderland facility following a fresh agreement. The manufacturer, which owns the Omoda and Jaecoo marques, has entered into a non-binding memorandum of understanding with Nissan to assemble its vehicles at the Sunderland site. The facility would continue to be owned by Nissan under the proposed arrangement, with staff operating it remaining employed by the Japanese manufacturer, although Chery would use the plant’s available production capacity for its passenger vehicles. Should the agreement proceed, Chery vehicles could start to roll off the Sunderland production line during the 2027 financial year.
Impact on Employment and Supply Chain
Nissan is the largest private sector employer in the North East, employing around 6,000 people while also supporting a supply chain whose companies support tens of thousands of jobs. In April, it emerged that the Jatco UK factory, 75% of which is owned by Nissan, had been forced to seek alternative work after it emerged it will no longer provide Nissan with the powertrains it was built to supply. The £50m plant – the Japanese company’s fourth overseas site – was due to start production this year, with the majority of its work focusing on a three-in-one powertrain for Nissan.
At the time, a Nissan spokesperson said: “Under the global RE:Nissan recovery plan, Nissan, together with partners, has conducted a comprehensive review of key initiatives, introducing further measures to ensure a strong recovery. As part of this the decision has been taken not to localise production of 3-in-1 electrified powertrain to the UK.”
Nissan's Electrification Strategy
A Nissan spokesperson said: “In recent years, the European market has experienced significant volatility in EV consumer demand, reflected in both actual and proposed adjustments to EV targets and support programmes across the UK and EU. Nissan has monitored this closely to ensure ongoing customer demand is met with a balanced electrified offering as part of its Electrification with Choice strategy.
“Nissan has a strong EV product offensive in Europe with the recent all-EV launches of new Micra and LEAF, to be followed by an entry A-segment EV later this year and Juke EV in early 2027. This builds on an existing electrified portfolio, including Juke HEV and market leading Qashqai e POWER hybrid, providing customers with a balanced range of drivetrain options.
“Nissan remains committed to expanding its electrified offering – including future developments for Qashqai – to deliver genuine electrification with choice but does not have anything further to announce at this time.”
