Cost Must Fall to Produce New EVs in UK, warns Nissan

A senior manager has said that the “economics have to work” in order for Nissan to produce new electric versions of its Juke and Qashqai vehicles in the United Kingdom. Ashwani Gupta, the chief operating officer of the company, stated that it was challenging for the United Kingdom to maintain its level of automotive manufacturing competition.

According to Ashwani Gupta, manufacturing costs in the UK were higher than in other nations due to higher energy costs and inflation as a whole. At Nissan’s Sunderland manufacturing facility, over 6,000 people work. Ashwani Gupta warned that lowering production costs was necessary for the UK to remain competitive. He went on to say that the UK was attractive to car manufacturers due to its robust supply chains and ongoing government support for the transition to electric vehicles.

When it comes to distributing production of the new Juke and Qashqai models among Nissan’s 44 global plants, Ashwani Gupta claims that Nissan must have the economics to justify it. However, Nissan has already committed to producing the electric vehicle that will succeed the Leaf at its Sunderland factory.

Manufacturers of automobiles frequently call on governments to provide more assistance. For a £1 billion investment to expand a battery plant that is owned by China and located right next to Nissan’s Sunderland facility, the company recently received approximately 100 million pounds in public funding.

However, as the global map of automobile manufacturing is being redrawn, the United States is providing automakers with subsidies worth tens of billions of dollars to move production and supply chains there. The European Union is also anticipated to respond with its own incentives.

The remarks made by Ashwani Gupta come as Nissan and Renault disclose the particulars of a significant reorganization of their 24-year alliance, which has previously been fraught with tension. In a joint statement, the two companies said that they had “rebalanced” their relationship by agreeing that Renault would reduce its stake in Nissan.

As part of the agreement, Nissan will acquire a stake in Ampere, Renault’s flagship electric vehicle division. Additionally, the companies stated that they would collaborate on battery and electronics technology and save money through joint projects in Latin America, India, and Europe.