Nissan Motor’s subsidiary, JATCO, has decided to cancel its plans to manufacture electric vehicle (EV) powertrains in Sunderland, United Kingdom. This decision comes as a result of sluggish demand for Nissan’s EVs across Europe, according to a report by the Nikkei business daily.

Initial Investment Plans

Back in January 2025, JATCO had announced an ambitious plan to invest 48.7 million pounds, equivalent to approximately $65.39 million, to produce up to 340,000 units of EV powertrains annually. These powertrains, which integrate the motor, inverter, and reducer, were to be manufactured at a plant in Sunderland specifically for Nissan’s electric vehicles.

Challenges and Reassessment

However, later in the year, Nissan faced significant challenges due to declining sales in major markets such as the United States and China. In response to these challenges, Nissan announced a strategic move to reduce its number of auto production plants from 17 to 10 and to reassess its powertrain manufacturing facilities.

The decision to scrap the Sunderland plant project reflects Nissan’s broader strategy to adapt to changing market conditions and focus on more profitable ventures. The company has not yet provided an official comment on this decision, and inquiries submitted to JATCO’s website remain unanswered.

Impact on Local Economy

The cancellation of the Sunderland project is likely to have implications for the local economy, as the investment was expected to create jobs and boost the region’s industrial output. The decision underscores the challenges faced by automakers in balancing investment with market realities, particularly in the rapidly evolving EV sector.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.