Nissan could continue making new electric vehicles (EVs) in the UK but it will need stronger government support for the industry, the Japanese company said as it took a larger stake in France’s Renault as part of a reset of its 15-year partnership.
Both the current gas-guzzling and EV versions of its Qashqai and Juke models are designed and manufactured by Nissan across five sites the UK, but the UK’s manufacturing costs are higher than elsewhere, said chief operating officer Ashwani Gupta.
The UK lowering production costs would keep the country competitive against international rivals, Gupta told the BBC, with government support on the EV transition and a healthy automotive supply chain also needed - such as the recently collapsed Britishvolt (which is on the verge of being rescued).
Government support was behind Nissan’s pledge in 2021 to build a new £1bn EV battery gigafactory in northeast England, along with a vow to continue making its LEAF electric cars in Sunderland.
But the company, which has over 40 other factories around the world, is still deciding where its new Juke and Qashqai models will be built .
Dangling the opportunity to Downing Street, Gupta said Nissan “needed to have the economics to justify it”.
Last night, the Yokohama-headquartered company jump-started the Renault-Nissan-Mitsubishi Alliance by agreeing to invest up to 15% in Ampere, Renault’s EV arm, saying this “would enhance and accelerate new business opportunities for Nissan in Europe”.
This agreement, which follows a previously announced reduction of Renault's stake in Nissan to 15% from around 43% to put the pair on a more equal footing, was accompanied by the announcement of several joint projects around Europe, Latin America and India.
Included in these announcements are that the pair are considering jointly deploying charging infrastructure around their Europe dealerships, and plan to jointly select battery recycling partners for their end-of-life batteries and production scraps.