Japanese automaker Nissan has revealed its intention to reduce its workforce in Europe by 10% and shut down one of the two production lines at its Sunderland facility. The company has initiated communication with employees regarding this restructuring, which might result in the elimination of 900 office positions, including some in the UK. Nissan’s global restructuring plan is now underway.
As part of the revamp, the two existing production lines at the Sunderland plant will be merged into a single line, although reports indicate that there will not be any job cuts as a direct result. The plant, which currently employs around 6,000 individuals and manufactures the Qashqai model, is operating below its full capacity. Furthermore, the production of the new Leaf model has commenced, offering a significant boost to the workforce and the local community.
By discontinuing one production line, Nissan opens the door for another manufacturer, reportedly a Chinese company, to potentially take over the vacated space. Speculations have linked Nissan with Chinese firm Chery, known for its Omoda and Jaecoo brands, as the fastest-growing Chinese group in the UK.
The Chinese-made Jaecoo 7 achieved the top-selling spot in Britain in March, marking the first time a Chinese brand led the market. This success reflects the increasing competitiveness of electric vehicles from China, posing a challenge to Western carmakers. Jaecoo, launched in the UK in February 2025, witnessed a remarkable 570% surge in sales in March, selling over 12,700 units, surpassing Volvo and outperforming Elon Musk’s Tesla brand. This achievement marks the first time since January 2023 and MG that a Chinese model became the best-selling car in the UK.
Earlier this year, Nissan and Chery finalized an agreement for the acquisition of Nissan’s manufacturing assets in Rosslyn, South Africa. Although there is no certainty yet regarding the utilization of the spare production line, an announcement may follow in the upcoming months.
A Nissan spokesperson stated, “Under the Re:Nissan recovery plan, we have been implementing strategic measures to enhance performance and establish a more agile, resilient business that can adapt swiftly to market dynamics. As part of this strategy, we are in discussions with our European workforce to streamline operations, reduce complexity, and ensure sustainable profitability. This includes deliberations on proposals for partially closing our Barcelona warehouse and transitioning to an importer model for Nordic markets. We have also announced plans to consolidate production at our Sunderland Plant from two lines to one as we explore future opportunities to maximize plant utilization.”