Nissan will close one of its two production lines at its Sunderland plant as part of a cost-cutting exercise. The move comes amid rising competition from Chinese manufacturers in Europe.
The closure is expected to eliminate 900 positions across Europe. However, Nissan has confirmed that no jobs at the Sunderland plant will be lost due to this decision.
Last year, the Sunderland factory built 273,174 cars. This figure represents a significant drop from a high of over half a million cars produced in previous years.
Andy Palmer, former chief executive of Aston Martin, stated, “Any reduction in capacity is bad news for Nissan and bad news for Sunderland.” This sentiment underscores the challenges facing the automotive industry.
Nissan’s market share in the UK has also declined, falling to 3.7% in the first four months of 2026 from 5.6% in 2016. The company has been actively slashing costs globally, including shuttering seven plants worldwide.
In response to the loss of capacity from line one, line two will shift to three shifts per day. Nissan aims to attract another car maker to take over line one at Sunderland in the future.
A spokesperson for Nissan commented, “Under the Re:Nissan recovery plan, we have been taking decisive actions to enhance performance and create a leaner, more resilient business that adapts quickly to market changes.” This reflects their strategy amidst evolving market dynamics.
The exact timeline for the closure of line one has not been confirmed but is expected to occur in the second half of this year. Stakeholders will be closely monitoring developments as they unfold.
