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Nissan has reportedly stopped work on a fully electric version of its bestselling Qashqai model at its Sunderland plant, as the Japanese car giant battles losses and pushes through a sweeping global restructuring plan.

Nissan has reportedly stopped development of a fully electric variant of its best-selling Qashqai model which was due to be built at its Sunderland factory.

Nissan pioneered the crossover segment when it introduced the Qashqai 16 years ago, sparking production of millions of vehicles, and in 2022 it confirmed that the Qashqai would feature its innovative e-Power technology. However, Reuters has reported that the Japanese automotive manufacturer quietly ceased work on the EV variant at its North East facility last year.

The news emerges as the company attempts to streamline its range and implement cost reductions across the organisation, having suffered a second consecutive year of losses as it recorded a net loss of approximately $3.4bn. It was in 2023 that Nissan confirmed its dedication to manufacturing new electric models at its Sunderland site, a year after unveiling plans for the Qashqai electric variant and after it committed that all of its new cars sold in Europe will be electric by 2030.

The revelations come a month after Nissan disclosed it was preparing to cut hundreds of positions across its European operations, and that it will be merging two existing product lines at its Sunderland facility into one. The Japanese car manufacturer has been grappling with difficult conditions in the global automotive industry, with the company pointing to fierce competition from Chinese competitors and obstacles during the transition to electric vehicles when it announced a significant global restructuring last year.

The Washington plant has, however, been spared the worst of the cut, and has recently been referred to as “central” to its operations, reports Chronicle Live.

Meanwhile, Nissan reached an agreement earlier this month with Chinese automotive manufacturer Chery, which could see it begin producing its vehicles at Nissan’s Sunderland facility following a fresh deal. The manufacturer, which owns the Omoda and Jaecoo brands, has entered into a non-binding memorandum of understanding with Nissan to assemble its vehicles at the Sunderland site.

Under the proposed arrangement, the facility would remain in Nissan’s ownership, with staff continuing to be employed by the Japanese manufacturer, while Chery would utilise the plant’s available production capacity for its passenger vehicles. Should the deal proceed, Chery vehicles could begin rolling off the Sunderland production line during the 2027 financial year.

Nissan is the largest private sector employer in the North East, with a workforce of around 6,000 people, while also sustaining a supply chain whose companies underpin tens of thousands of jobs.

In April, it emerged that the Jatco UK factory, 75% of which is owned by motor manufacturer Nissan, had been compelled to seek alternative work after it became clear it would no longer supply the Japanese manufacturer with the powertrains it was originally built to provide. The £50m plant – the Japanese company’s fourth overseas site – had been scheduled to commence production this year, with the bulk of its output centred on a three-in-one powertrain for Nissan.

At the time, a Nissan spokesperson said: “Under the global RE:Nissan recovery plan, Nissan, together with partners, has conducted a comprehensive review of key initiatives, introducing further measures to ensure a strong recovery. As part of this the decision has been taken not to localise production of 3-in-1 electrified powertrain to the UK.”

A Nissan spokesperson said: “In recent years, the European market has experienced significant volatility in EV consumer demand, reflected in both actual and proposed adjustments to EV targets and support programmes across the UK and EU. Nissan has monitored this closely to ensure ongoing customer demand is met with a balanced electrified offering as part of its Electrification with Choice strategy.

“Nissan has a strong EV product offensive in Europe with the recent all-EV launches of new Micra and LEAF, to be followed by an entry A-segment EV later this year and Juke EV in early 2027. This builds on an existing electrified portfolio, including Juke HEV and market leading Qashqai e POWER hybrid, providing customers with a balanced range of drivetrain options.

“Nissan remains committed to expanding its electrified offering – including future developments for Qashqai – to deliver genuine electrification with choice but does not have anything further to announce at this time.”

As anxiety mounts over the long-term solvency of the Social Security trust funds, a growing number of Americans are rushing to claim their benefits early out of fear that the program will run dry.

However, personal finance expert Suze Orman warns that following this viral advice will lock retirees into a permanent financial penalty that cannot be undone.

“There’s been some chatter on social media lately about Social Security that I think is bad advice,” Orman wrote earlier this month on her website. “The message is that you are better off claiming as early as possible — at age 62 — rather than waiting to collect a larger benefit by starting your checks later. That’s just not good advice.”

About two weeks ago, the Social Security Administration released its 2026 Trustees Report, which confirms that the federal retirement safety net is less than seven years away from reserve depletion, as the Old-Age and Survivors Insurance (OASI) Trust Fund is projected to exhaust its accumulated reserves in the fourth quarter of 2032.

SOCIAL SECURITY HAS LESS THAN 10 YEARS BEFORE RESERVES ARE EXHAUSTED, NEW TRUSTEES REPORT WARNS

Once the reserves are depleted, ongoing tax revenues will cover only 78% of scheduled retirement benefits, according to the report.

People wait in front of a Social Security office in Citrus Heights, California, on July 12, 2023. (Getty Images)

According to SSA data, claiming retirement benefits at age 62 remains popular among retirees, though filing early permanently locks in lower monthly benefits.

“For anyone born in 1960 or later, your Full Retirement Age is 67. That is when you are entitled to 100% of your earned Social Security benefit. If you choose to start collecting at 62, you receive just 70% of that benefit — a 30% reduction that is locked in permanently. Claiming early is basically accepting a 30% penalty,” Orman said.

“A woman in average health who reaches age 65 has a life expectancy of 88. That means a 50% probability of still being alive at 88 — still here, still paying bills, still needing income. If she reaches her break-even age of 79, there is a very real chance she has at least another decade or more ahead of her,” Orman said. “Every month past that break-even point, the person who waited is collecting meaningfully more.”

The personal finance expert also pushed back on claims circulating online that filing early secures your benefits before the trust funds run low.

“Current projections suggest that if Congress does nothing, Social Security would pay out roughly 80% of scheduled benefits — a 20% reduction. That is the worst case. And as I have discussed before, Social Security has survived funding challenges before; in the early 1980s, Washington found solutions that did not require beneficiaries to absorb the full cost,” she said.

“If your benefit at 67 would be $2,000, claiming at 62 locks in a $1,400 monthly payment… Now apply the 20% worst-case cut to both. The person who waited until age 67 might see their benefit reduced from $2,000 to $1,600. The early claimer collects around $1,260.”

Orman said there are two exceptions to claiming Social Security early: health issues and the inability to work or draw from retirement savings.

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And the “strongest move,” according to Orman, is waiting until age 70 to claim Social Security benefits.

“If you are married, please have the higher earner wait as long as possible — ideally until 70. The surviving spouse receives the larger of the two benefits. Making that number as large as possible is one of the most important financial gifts you can leave your partner,” Orman said.

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The price of oil has fallen back to levels not seen since before the Iran war, handing hard-pressed UK businesses the prospect of cheaper fuel as traffic through the critical Strait of Hormuz shipping lane gradually resumes.

Brent crude, the global benchmark, briefly dipped below $72.48 (£55) a barrel, the level it sat at the day before the United States and Israel launched their attacks on Iran on 28 February, before edging back up to $73.23.

Energy markets have endured a torrid few months since Tehran retaliated by effectively closing the strait, a waterway that carries a substantial share of the world’s seaborne oil and gas. For the haulage, hospitality and agricultural firms that have watched their fuel bills balloon since the spring, the retreat in crude cannot come soon enough. Many smaller operators have spent the conflict simply trying to absorb costs they could not pass on, a squeeze Business Matters has tracked among hauliers, hotels and farms pushed into survival mode.

Crude has been falling steadily since 17 June, when Washington and Tehran signed a Memorandum of Understanding setting out a 60-day window for negotiations on Iran’s nuclear programme and other measures aimed at ending the war. Representatives from both sides met in Switzerland last weekend, talks that led the United States to partially lift sanctions on Iranian oil exports.

The number of vessels crossing the Strait of Hormuz has risen sharply since the agreement was struck, according to maritime intelligence firm Kpler. Its latest figures suggest 284 vessels made the transit from 18 June, the day after the deal was signed, although that remains well below the pre-conflict average of around 138 crossings a day. The ships passing through in recent days have included those carrying crude oil, liquefied natural gas, fertiliser and other goods, Kpler told the BBC.

The United States and Iran have also established a “communication line” to prevent misunderstandings “with the aim of safe passage for commercial vessels through the Strait of Hormuz”, mediators Qatar and Pakistan said in a joint statement on Monday.

Dimitris Maniatis, chief executive of maritime risk advisory firm Marisks, which is working with ships stranded in the region, described a “tremendous shift”, with far more vessels using the strait in recent days. A limited number of ships can cross a northern passageway with the permission of Iranian authorities, he said, while the US navy has set out a southern route cleared of mines and other obstacles laid during the war. Even so, traffic remains below the pre-war norm, when more than 100 ships a day used the route.

For drivers and the firms that run vans and lorries, attention has now turned to how quickly the fall in crude feeds through to the forecourt.

“On the back of the lowest oil price since before the Iran war started, drivers should see the average price of petrol fall below 150p [a litre] in the next week or so,” said Simon Williams, head of policy at the RAC. He added that diesel “ought to go back under 160p”. Petrol peaked at 159.53p a litre on 28 May, according to the motoring group, while diesel has eased from a high of 191.54p on 15 April. Drivers can track the daily averages through the RAC’s Fuel Watch data, and the longer-term trend is laid out in the House of Commons Library’s briefing on petrol and diesel prices.

In the United States, the average price of regular petrol has slipped to around $3.93 a gallon after touching $4 in April, its highest since 2022, though it remains well above pre-war levels.

The pace of those falls has become political. President Donald Trump on Wednesday ordered an investigation into the major energy companies, accusing Shell, ExxonMobil and others of “gouging” drivers by failing to cut pump prices even as crude costs tumbled. “Oil prices have come down so much and we are not seeing anything at the pump by comparison the way they should be,” Trump told reporters in the Oval Office. The American Petroleum Institute, which represents the US oil and gas industry, countered that fuel prices “don’t move in lockstep with crude oil”.

British energy firms have faced similar accusations of unfairly inflating petrol prices since the war began. Last month, however, the UK competition watchdog said it had found no widespread evidence of profiteering, noting that average margins were “broadly unchanged” between February and March.

For now, the direction of travel offers a measure of comfort to the millions of smaller firms for whom fuel is an unavoidable line on the balance sheet, and for whom relief has been a long time coming. Whether the easing endures will depend on whether the fragile peace holds, and on how far the broader pressure of stubbornly high energy costs on UK business continues to bite.

Jamie Young

Jamie is Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops.

When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders.

This article was written by

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