Nissan is set to close one of its two production lines at its Sunderland plant as part of a company-wide cost-cutting initiative that will eliminate 900 positions across Europe. The Sunderland facility manufactures the new electric Leaf, the Juke, and the Qashqai, all of which will now be produced on a single line. Nissan confirmed that no jobs would be lost directly at the Sunderland plant due to this specific line closure, though some roles in the U.K. could be affected as part of the broader 900 job cuts across the continent.
The closure of the line signals a decline in production numbers at Nissan's only European plant. The factory produced 273,174 vehicles last year, a significant drop from its peak of over half a million.
In a statement, Nissan indicated it is taking measures "to create a leaner, more resilient business that adapts quickly to market changes." Additional strategies under review include the partial closure of its Barcelona parts warehouse and a shift to an importer model in Nordic countries.
Nissan hopes to attract another automaker to take over line one at Sunderland in the future. Chinese manufacturers Chery and Dongfeng have both been linked to potential production at the site. The successful sale of line one, Nissan stated, would help preserve jobs and boost production for the company.
The line closure is expected in the latter half of the year, with line two moving to three shifts to offset the lost capacity.
View Price on AmazonFormer Nissan executive Andy Palmer, who began his career at Sunderland, expressed sadness at the announcement. "Any reduction in capacity is bad news for Nissan and bad news for Sunderland," he told Autocar.
Like other Japanese automakers, Nissan has been significantly impacted by heightened competition in Europe, particularly from Chinese rivals. Its market share in the U.K. declined to 3.7% in the first four months of 2026, a notable drop from 5.6% in 2016. Meanwhile, Chery captured nearly 5% market share through April, propelled by the success of its Jaecoo, Omoda, and Chery brands, according to SMMT data. MG also surpassed Nissan with 4%, while BYD trailed closely at 3.45%.
Nissan has been implementing global cost reductions, including closing seven plants, as part of a campaign led by CEO Ivan Espinosa to rebuild its financial health after a £3.8 billion (approximately $4.8 billion USD) loss in the fiscal year ending March 2025. Globally, the company has faced intensified competition across all markets, including China, along with a hike in import tariffs on its exports to the U.S.
Before the announcement of line one's closure at Sunderland, the plant had been largely unaffected by the cuts. U.K. government support helped secure production of the new electric Juke, slated to begin later this year.
Source: autocar.co.uk
