Nissan pulls plug on UK e-axle project amid EV slowdown in Europe
Japanese carmaker Nissan said it has postponed the £280 million electric motor (e-axle) investment planned for its Sunderland plant. The decision cites a 14 percent year-over-year decline in European EV sales. A planned 1,200 engineering jobs at Sunderland are being suspended for 18 to 24 months.
Nissan Europe chief executive Guillaume Cartier said in his statement that the company is reprioritising investments based on a forecast of EV growth limited to 'low single digits' over the next 24 months. UK Business Secretary Pat McFadden said in his statement that 'the decision is disappointing' but emphasised the 6,700 current Sunderland jobs remain protected. Northumbria union representatives are calling for the plan to be re-examined.
The Nikkei analysis notes that the 14 percent annual contraction in the European EV market in April was driven by Volkswagen ID-series discount policy and Stellantis price competition. Citi Tokyo analyst Hiroshi Hamada said Nissan's fiscal 2026 guidance could be revised. Nissan stock fell 1.8 percent in Tokyo, while Sunderland supplier Calsonic dropped 4.1 percent.
UK Society of Motor Manufacturers and Traders (SMMT) chief executive Mike Hawes said the e-axle cancellation 'signals the UK may need to revise its 2030 EV target framework'. SMMT data shows UK EV sales are down 9 percent year-to-date. This article is informational and should not be construed as investment advice.
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