A senior Nissan executive has warned that the UK is no longer a cost-effective location for vehicle production. Alan Johnson, senior vice president overseeing Nissan’s operations across multiple regions, told MPs on the Business and Trade Committee that energy and labour costs, along with a weaker supply base, make the UK uncompetitive.
He said the Sunderland plant pays more for electricity than any other Nissan facility globally. “Ultimately, the UK is not a competitive place to be building cars today,” he stated.
Alan Johnson, NissanDespite closing a late shift at the plant earlier this year, no jobs were lost, with 400 workers redeployed. The site currently employs around 6,000 staff.
Johnson welcomed updates to the UK’s zero emissions vehicle (ZEV) mandate but stressed the need for greater incentives to boost electric vehicle production and sales. He added that US tariffs have had minimal impact on Sunderland directly, though Nissan globally has been more heavily affected.