Nissan unit drops UK EV powertrain plan

Nissan Motor subsidiary JATCO has scrapped its plan to manufacture electric vehicle powertrains at a plant in Sunderland, Britain, according to a report from the Nikkei business daily relayed by Reuters on May 24, 2026. The move represents a scaling-back of previously planned UK activity related to Nissan’s electric vehicle powertrains.

The abandoned project would have involved producing EV powertrains in Sunderland, where Nissan already has significant automotive operations. The reports did not specify the expected scale of the cancelled project or outline any replacement investment or production plans for the facility.

Nikkei attributed JATCO’s decision to sluggish demand for Nissan electric vehicles across Europe. The report connected softer market conditions for these vehicles with the cancellation of the Sunderland powertrain manufacturing plan.

No further detail was provided on which Nissan EV models or specific European markets were most affected by the weaker demand. The reports also did not indicate whether the decision might affect other Nissan or JATCO operations in Europe beyond the Sunderland project.

Reuters reported that Nissan did not provide an immediate comment on the Nikkei account outside regular business hours. A query submitted via JATCO’s website had also not received a response at the time of reporting, leaving the companies’ official positions on the cancellation undisclosed.

As a result, publicly available information about the decision is currently limited to what was reported by Nikkei and relayed by Reuters. There has been no official confirmation or clarification from Nissan or JATCO regarding the reasons for the change in plan or potential future alternatives for EV powertrain production.

The reported withdrawal from the Sunderland EV powertrain project suggests an adjustment in how Nissan’s supply chain for electric vehicle components may develop in Europe. However, the extent of the impact on local employment, investment levels, or broader UK EV manufacturing strategy has not been detailed.

With key questions still unanswered, including any revised production strategy for Nissan EV powertrains in Europe, the full implications of JATCO’s decision remain unclear based on the information currently available from Nikkei and Reuters.