Nissan is engaged in discussions with the UK government over securing additional financial support to sustain its Sunderland manufacturing plant, with any potential agreement likely contingent on a loosening of the country’s electric vehicle (EV) sales targets. Sources close to the talks indicated that the Japanese automaker would consider further investment in the Sunderland facility if government officials agree to ease the current zero-emission vehicle (ZEV) mandate, which requires 80 percent of new car sales in Britain to be fully electric by 2030.

The proposed government assistance, which may take the form of grants or tax incentives, would be linked to Nissan’s commitment to maintaining operations at the plant. This comes after multiple warnings from the company over the past decade about the risk of closure amid ongoing challenges. The talks follow Nissan’s recent nonbinding agreement with Chinese state-owned automaker Chery to produce Chery-branded vehicles at Sunderland. This partnership aims to improve the factory’s utilization, which currently stands at around 50 percent capacity.

According to individuals familiar with the negotiations, any new public funding is expected to support Nissan exclusively and would not be extended to Chery, which owns the Omoda and Jacobco brands and has become one of the fastest-growing Chinese carmakers in the UK.

Nissan has previously cautioned government officials that stringent EV targets threaten jobs and the broader competitiveness of Britain’s automotive sector. Business Secretary Peter Kyle, along with trade union representatives, have similarly raised concerns about potential job losses within the industry.

In response to these concerns, Prime Minister Sir Keir Starmer is expected to initiate a consultation on revising the ZEV mandates. Starmer recently approved a proposal to reduce the fully electric sales target from 80 percent to 50 percent by 2030, with the remaining half comprising hybrid vehicles.

The UK government stated it is continuing to collaborate closely with Nissan to support jobs and ensure growth within the automotive sector. Officials emphasized their commitment to the ZEV mandate but noted a willingness to review the policy with the aim of balancing industry interests and sustaining investment in British manufacturing.

Nissan affirmed its “strong and collaborative relationship” with the UK government and expressed intent to continue working together.

In 2023, the government pledged hundreds of millions of pounds toward a £2 billion investment in Sunderland and nearby battery production facilities operated by supplier AESC. The Sunderland plant, employing approximately 6,000 workers, was spared from closure or divestiture during Nissan’s recent global restructuring under CEO Ivan Espinosa.

The facility is currently responsible for producing the all-electric Juke alongside the Qashqai and Leaf models. However, production volumes remain below levels needed to fully secure the plant’s future. Sunderland occupies a secondary role within Nissan’s global strategy, as the company’s core markets remain the United States, Japan, and China.