Nissan’s Wake-Up Call: Can the UK Afford to Keep Its Auto Industry Alive?

Image Source: Motor Authority

Nissan's head of manufacturing has sounded the warning on the future of UK motor manufacturing, claiming that the nation has become "too costly" for car manufacture. Nissan Senior Vice President for Manufacturing, Supply Chain, and Purchasing Alan Johnson informed British legislators that the Sunderland factory now has the highest electricity price of any Nissan plant globally, in addition to increasing labor and training costs.

Important Points:

Johnson pointed out UK electricity costs are rising above other nations, heavily affecting the competitiveness of the Sunderland factory.
The cost of labour and training has also increased, in addition to an underpowered local supply base further contributing to operational difficulties.
Nissan recently closed a late shift at Sunderland on grounds of efficiency, although there were no job losses. The factory is still a significant employer with 6,000 employees.

The warning follows Nissan's worldwide profit decline of £1.59 billion in 2024, leading to job losses and renewed emphasis on cost control.

Johnson called on the UK government to bring in further incentives for manufacturing electric vehicles and was pleased with recent policy developments, but emphasized that immediate action is required to sustain UK car manufacturing.

Sources: BBC, Sunderland Echo, GB News