Nissan is to combine its two production lines at its Sunderland factory in a move that could pave the way for a Chinese rival to take over the other
Japanese car giant Nissan has announced plans to shed 10% of its European workforce and axe one of two production lines at its Sunderland plant.
The company has begun telling staff about the shake-up which, according to reports, could lead to 900 office jobs, including some in the UK. Nissan has unveiled a global restructuring.
As part of the overhaul, Sunderland’s two existing production lines will be combined into one, although sources told the Mirror this will not lead to redundancies. It employs about 6,000 people.
Sunderland – which makes the Qashqai model – is already operating at well below capacity. Production of the new Leaf model has also begun, in what was seen as a major boost to the plant’s workforce and the surrounding area.
The removing of one production paves the way for another manufacturer, widely rumoured to be a Chinese firm, to take over the space. Reports have linked Nissan with Chinese firm Chery, which owns the Omoda and Jaecoo. It is the fastest growing Chinese group in the UK.
The Chinese made Jaecoo 7 was Britain’s best selling model in March, the first time the brand has held the top spot. It comes amid a wave of electric cars from China that are proving a major challenge to Western manufacturers. Jaecoo only launched in the UK in February 2025 and saw a 570% surge in UK sales year on year in March. Its sales of just over 12,700 was almost as many as Volvo and 4,000 more than Elon Musk’s Tesla brand. It was the first time since January 2023 and MG that a Chinese made model has been the UK’s best seller,. The next best selling model last month was the Ford Puma, then the Nissan Qashqai.
In January this year, Nissan and Chery reached agreement on the acquisition of Nissan’s manufacturing assets in Rosslyn, South Africa.
Insiders say there is no certainty at this stage that a deal will be done to utilise the spare production line, but an announcement could be made in the coming months.
A Nissan spokesperson said: “Under the Re:Nissan recovery plan, we have been taking decisive actions to enhance performance and create a leaner, more resilient business that adapts quickly to market changes.
“As part of this approach, today we have opened discussions with our European employees with a view to simplifying our structures, reducing complexity, and ensuring we operate in a sustainable and profitable way. This includes discussions on proposals for the partial closure of our Barcelona warehouse and to move to an importer model for our Nordic markets.
“We have also announced that we will consolidate production from two lines to one at our Sunderland Plant as we assess future opportunities to secure full plant utilisation.”
