Nissan has announced a £170 million investment in its Sunderland plant in northeastern England to manufacture the European version of its Kicks hybrid SUV. This model, previously produced in Japan, Brazil, and Mexico, marks the latest addition to the UK’s largest car manufacturing facility, which has been operational since 1986.
The Sunderland factory, the biggest vehicle production site in the UK with around 6,000 employees, will build the compact crossover using hybrid technology. The Kicks model features an electric motor powered by a petrol engine that recharges its battery, aligning with growing consumer demand for electrified vehicles. This will be the tenth model produced at the plant since its inception, which has seen 12 million vehicles built over four decades.
Nissan’s regional chairman, Massimiliano Messina, described the move as a demonstration of the company’s ability to rapidly introduce new models to regional markets and called it “fantastic news” for Europe. Business Secretary Jonathan Reynolds welcomed the announcement, referring to it as a “huge vote of confidence” in UK manufacturing and highlighting Sunderland's long history of supporting skilled jobs and contributing to the automotive industry’s development in the northeast.
Despite this investment, the Sunderland plant has experienced challenges in recent years, operating at about half its annual capacity of 500,000 vehicles and navigating financial pressures within Nissan. Earlier in 2026, Nissan also agreed to produce vehicles for the Chinese manufacturer Chery at the same facility, consolidating production lines for existing models like the Qashqai, Juke, and Leaf to accommodate this expansion.
Industry representatives have highlighted the importance of such investments for the UK automotive sector, citing its fundamental strengths and potential for growth. Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, emphasized the need to improve competitiveness by addressing high business costs, especially in energy and labor, and ensuring favorable trade conditions to attract further manufacturing projects.
Paul Butler, head of the North East Automotive Alliance, noted that the northeast region has become a leading hub in Europe for vehicle electrification, battery technology, and advanced manufacturing. He said Nissan’s continued commitment to Sunderland not only celebrates four decades of success but also signals the area’s ongoing appeal for automotive investment.
Alongside Nissan’s announcement, other automotive industry developments include McLaren’s plan to invest £500 million to establish a new factory and expand research and development facilities in the UK, promising additional job creation and reinforcing the country’s status in car manufacturing. Business Secretary Reynolds described McLaren’s investment as the largest in the UK car industry in the post-war era, underscoring confidence in the sector’s future.