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IVAN ESPINOSA SAID THE WEARSIDE OPERATION IS UNLIKELY TO BE AMONG THE SEVEN GLOBAL FACTORIES TO CLOSE AS PART OF SWINGEING COST CUTTING MEASURES, BUT WARNED IT NEEDS GOVERNMENT SUPPORT
14:16, 16 May 2025 Workers at Nissan's Sunderland plant could have a hand in producing cars for a Chinese brand, it has been suggested. Newly installed Nissan chief executive Ivan
Espinosa told a London conference that "everything is on the table" when asked if the manufacturer could team up with Chinese state-owned firm Dongfeng - an existing partner of
more than 20 years in China - at the Wearside plant. Speaking at the FT Future of the Car event, Mr Espinosa said: "We could leverage some of our joint work outside of China, inviting
them to come into our production ecosystems — everything is open." He also said it was unlikely the Sunderland operation would feature in plans to close seven factories across the
world, amid drastic cost cutting efforts in the face of severe financial challenges. But the signals came with a warning that Nissan requires Government support to remain competitive in the
UK - echoing recent comments from North East-based senior executive Alan Johnson, who told MPs the Sunderland factory incurs higher electricity costs than any of its global counterparts. Mr
Espinosa said: "Things like energy and a few other things are not as competitive as they are in other markets, and we need support from the Government to remain competitive in the UK
and keep our plant moving forward." Article continues below Last week, Downing Street officials contacted Nissan to ask for more detail about proposed factory closures, amid worries
that Sunderland - which employs about 6,000 people - could be under threat. That followed a stepping up of already significant global cost cutting plans, meaning the business will now slash
20,000 jobs and reduce its number of factories from 17 to just 10 by 2027. The company said the shake-up will help “create a leaner, more resilient business” as it targeted 250 billion yen
(£1.28bn) worth of cost savings against the previous financial year. Workers and suppliers in the North East were offered some solace when Mr Espinosa highlighted the Sunderland factory is
due to see three new electrified models on the production lines. Article continues below Last week, as he announced 2024 financial results showing a £3.4bn loss, Mr Espinosa said: "In
Europe we will strengthen our presence by assembling more electrified models in Sunderland, utilising also our Alliance relationship with Renault to take advantage of their assembly line and
electric vehicle architecture." The Sunderland plant has been the focus of multimillion-pound investment in recent years, including the EV36zero plans drawing together electric vehicle
production, battery-making capacity and renewable power sources. Last week, Chancellor Rachel Reeves was at battery maker AESC's nearby gigaplant to announce Government backing for a
£1bn investment into the firm's second facility to supply Nissan. That followed news earlier this year that Nissan-owned transmission supplier Jatco is setting up a £48.7m factory at
the International Advanced Manufacturing Park.