Future of Nissan's Sunderland plant secured

Nissan's chief operating officer Ashwani Gupta has said that the future of Nissan's Sunderland plant is now secure.

Gupta had previously said the Sunderland plant would have been unsustainable in the event of a Brexit no-deal.

Currently, batteries in its Leaf electric cars are imported from Japan, but Gupta announced these parts would be now made in Sunderland too.

Manufacturing the more powerful batteries in the UK will ensure its cars comply with trade rules agreed with the EU requiring at least 55% of the car's value to be derived from either the UK or the EU to qualify for zero tariffs when exported to the EU.

Speaking to the BBC, he said: “The Brexit deal is positive for Nissan. Being the largest automaker in the UK we are taking this opportunity to redefine auto-making in the UK.

“It has created a competitive environment for Sunderland, not just inside the UK but outside as well.

“We’ve decided to localise the manufacture of the 62kWh battery in Sunderland so that all our products qualify [under rules of origin].

“We are committed to Sunderland for the long term under the business conditions that have been agreed.”

Graeme Miller, Leader of Sunderland City Council, said: "This is another vote of confidence in the city's world-leading automotive sector and for both Nissan and Envision AESC. It helps cement the city's well-established track record in future technologies, which is vital to the city's economy as well as to the wider economy of the region and UK.

"We know how important electrification is to the automotive and advanced manufacturing sector moving forward and this announcement not only reinforces Sunderland's reputation in Electric Vehicle production but also as the UK centre for battery manufacturing.

"It is vital as we grow our green economy, work towards our goals to become carbon neutral as a city, and support achievement of the Government's net zero targets.  This is excellent news and a great step as we continue to move forward on this critical agenda."