Full Breakdown
Nissan Invests £170 million in Sunderland to Build New Kicks e-POWER Hybrid
By Drooid · · How we work
Core Event
On 16 September Nissan announced a £170 million investment to produce the Kicks e-POWER hybrid crossover at its Sunderland plant in north-east England. The model will join the Qashqai, Juke and Leaf, marking the first European production of the second-generation Kicks, which has sold more than 1.8 million units in over 70 markets.
Background & Context
Sunderland, Nissan’s largest UK assembly site, celebrated its 40th anniversary in 2026. Since 1986 the plant has built 12 million vehicles, employing roughly 6,000 workers directly and supporting about 30,000 jobs in the supply chain. The factory is operating at about 50 % capacity, prompting Nissan to add new models.
The UK government is reviewing its Zero-Emission Vehicle (ZEV) mandate, which targets 80 % electric sales by 2030. Industry lobbying has led to a consultation on lowering the target to as low as 50 % by the decade’s end. Nissan has said the investment depends on a softened mandate.
Timeline
- 16 September – Nissan confirms the £170 million investment and the plan to build the Kicks e-POWER hybrid at Sunderland.
- June 2026 – Nissan disclosed talks to lease a production line to Chinese automaker Chery for contract manufacturing at Sunderland.
- Late 2026 (consultation period) – UK government consultation on amending the ZEV mandate runs through October.
Data & Statistics
- Investment: £170 million (? $229 million).
- Plant capacity: 6,000 employees on site; 30,000 jobs in the wider supply chain.
- Production history: 12 million vehicles built since 1986, averaging one car every 1 minute 45 seconds.
- Global Kicks sales: over 1.8 million units in more than 70 countries.
- e-POWER hybrids sold worldwide: more than 1.9 million since 2016, including 200,000 Qashqai e-POWER units built in the UK.
Official Statements & Responses
North East mayor Kim McGuinness highlighted the £170 million spend as a vote of confidence for the region’s car-making sector.
Why It Matters
The investment aims to raise Sunderland’s capacity utilisation by adding a core B-segment model, protecting existing jobs and generating additional supply-chain activity. It also signals Nissan’s commitment to hybrid electrification in Europe amid tightening emissions rules and competition from Chinese manufacturers.
Conflicting Reports & Gaps
- Job creation: Messina said the investment “would not bring new jobs,” while other officials framed it as a boost for “thousands of highly skilled jobs.”
- Production timeline: Nissan has not disclosed a start date for Kicks assembly.
- Mandate conditions: Nissan links the investment to a potential amendment of the ZEV mandate, but the exact trigger remains unspecified.
What’s Next
The UK government’s ZEV consultation is expected to conclude by the end of October 2026. Nissan’s negotiations with Chery and its lobbying of EU “Made in Europe” rules will shape the plant’s future production mix. Stakeholders will watch for any formal agreement on financial support or long-term commitments that could solidify Sunderland’s role in Nissan’s European strategy.