Nissan will close one of its two production lines at its Sunderland plant as part of a cost-cutting exercise in which the Japanese firm will eliminate 900 positions in Europe.
Sunderland builds the new electric Leaf, the Juke and the Qashqai, and all will now run down the same line. Nissan confirmed that no jobs at the plant would be lost as a result of the move – but some roles in the UK could go as part of the 900 across Europe.
The closure of the line marks the decline of production numbers at Nissan’s sole European plant. The factory built 273,174 cars last year, down from a high of more than half a million.
Nissan said in a statement that it was taking measures “to create a leaner, more resilient business that adapts quickly to market changes”. Measures under review include the partial closer of its Barcelona parts warehouse and a move to an importer model in Nordic countries.
Nissan is hoping to attract a second car maker to take over line one at Sunderland in the future, with Chinese makers Chery and Dongfeng both linked to production at the site.
The successful sale of line one would preserve jobs and increase production at the company, Nissan said.
The closure of the line is expected to happen in the second half of the year, with line two moving to three shifts to compensate for the loss of capacity.
Former Nissan executive Andy Palmer, who started his career at Sunderland, expressed sadness at the announcement. “Any reduction in capacity is bad news for Nissan and bad news for Sunderland,” he told Autocar.
Like all Japanese manufacturers, Nissan has been hit hard by increased competition in Europe, especially from the Chinese. Its market share in the UK fell to 3.7% in the first four months of 2026, down from 5.6% in 2016.
Chery, meanwhile, had a share of almost 5% through April, thanks to the success of its Jaecoo, Omoda and Chery brands, according to data from the SMMT. MG also beat Nissan at 4%, while BYD was close behind at 3.45%.
Nissan has been slashing costs globally, including shuttering seven plants, as part of a campaign under CEO Ivan Espinosa to restore its fortunes following a £3.8 billion loss in the financial year ending March 2025.
Globally the company has been hit by increased competition in all markets, including China, as well a hike in import tariffs on its exports to the US.
Before the announcement of the closure of line one at Sunderland, the plant had been relatively unaffected by the cuts.
Support from the UK government helped secure it production of the new electric Juke, due to start at the end of the year.
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The only surprise here is it's taken them this long.
I'd have expected UK jobs to disapear too, it seems crazy you can merge two production lines and not loose any jobs.
I'll also open a can of worms by mentioning the B word. I'm not suggesting Brexit played any part in Nissans decision, but what I will do is remind those who said Brexit would be the end of the UK car industry that they were simply scaremongering.
China has given all European manufacturers a massive headache and a much needed kick up the backside. What we're hearing so far with Nissan is that British jobs will be unaffected whilst 900 jobs in the EU will disappear. In otherwords, those remainers couldn't have been more wrong if they tried about the effects of Brexit on the UK car industry.
As you also noticed, it's for the birds jobs won't be lost.
Also Chinese manufacturers are opening plants in the EU rather than UK, creating jobs there rather than here, for some strange reasons.
Check your specs !, fiur five lines in it says......?
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Agreed, but the headline being wrong and no proof reading by the writer or editorial team on this magazine is what my comment is about.
I would join in but I can find my handbag...