Nissan to Invest £170M in Sunderland Plant for New Hybrid SUV
Nissan plans to build the Kicks hybrid SUV at its Sunderland factory, but conditions the £170M investment on the UK easing its EV sales mandate.
Nissan has announced a £170 million investment to manufacture a new hybrid sport utility vehicle at its Sunderland facility, Britain's largest car factory — contingent on the UK government relaxing its electric vehicle sales mandate. The Japanese automaker confirmed the new model, called the Kicks, would be produced at the plant in Tyne and Wear, which supports approximately 6,000 jobs.
The conditional nature of the commitment underscores the tension between government EV policy and automakers seeking flexibility to sell hybrid vehicles alongside fully electric models. Nissan's stipulation places pressure on policymakers to reconsider the pace and strictness of the current zero-emission mandate framework before the investment is finalized.
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The Kicks represents the company's latest effort to secure long-term viability for its Sunderland operation, which has faced recurring uncertainty over its future amid shifting industry dynamics and the broader global transition away from combustion engines. The plant has historically been a cornerstone of UK automotive manufacturing.
The investment decision highlights how major carmakers are leveraging their economic footprint — and the jobs tied to it — as a bargaining chip in ongoing negotiations with governments over emissions regulations. Whether Westminster adjusts its EV mandate timeline remains a critical variable for the deal's completion.
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