Nissan boss says building cars in UK too expensive

A senior chief from Nissan warned that the United Kingdom “is not a competitive place to build cars.”

Alan Johnson de Nissan told parliamentarians that the Sunderland factory “pays more for its electricity than any other Nissan plant in the world.”

A late shift at the Wearside plant closed in February, but work was not lost after the workers moved to other lines.

Johnson, senior vice president of manufacturing Nissan’s operations in Africa, Middle East, India, Europe and Oceania, urged the government to support the automotive sector.

He said: “They are energy costs, it is the cost of everything involved in the cost of labor, training. It is the basis of the supplier or the lack of. All kinds of different problems.

“Ultimately, the United Kingdom is not a competitive place to build cars today.”

Nissan announced last year that it would reduce around 9,000 jobs worldwide after the financial results for the first half of 2024 revealed that their operational gain had collapsed at £ 1.59 billion.

Around 6,000 people work at the Sunderland plant.

In February it was confirmed that a late shift in one of the factory production lines would be closed, but work was not lost after some 400 affected workers changed to other lines were changed to “maximize efficiency.”

At Tuesday’s audience about the Business and Commerce Committee of the Chamber of the Commons, Johnson requested more to encourage the sale and production of electric vehicles in the United Kingdom.

The welcome of a relaxation of regulations on zero emission vehicles (ZEV) announced by Sir Keir Starmer.

The Nissan executive also assured parliamentarians that the impact of Donald Trump’s rates on the Sunderland plant was “small”, he thought the company as a whole was “significantly affected.”

Imports from the United Kingdom to the US now are charged a 10% tariff, with higher 25% rates for cars, steel and aluminum.

A combined authority meeting of the Northeast heard last week that vehicles and road components represent 30% of the northeast exports worldwide.

However, less than 6% were exported to the US, leaving the “less exposed” region than other areas.