Double boost for UK automotive sector after announcements from Nissan and McLaren

Jobs will be created and safeguarded after news of significant investment from the two carmakers

A double boost for the UK economy has arrived courtesy of two major announcements from the automotive industry.

Nissan has confirmed this morning that it will manufacture a new model at its Sunderland plant, with the decision to produce the Nissan Kicks on Wearside representing a £170m investment into the facility.

The news comes after a prolonged period of considerable uncertainty at the plant, which has seen job cuts and the closure of one of its production lines. Nissan has shuttered several factories across the globe as part of its cost-cutting drive following a difficult period, yet the North East facility is regarded as one of its strongest performers.

The Kicks will become the 10th model to roll off the production line at Nissan’s Sunderland plant, which is celebrating its 40th anniversary this year. The factory has now produced in excess of 12m vehicles since the first Nissan Bluebird was built there in 1986.

Adam Pennick, vice president of manufacturing at Nissan’s Sunderland plant, said: “I’m proud to welcome this new model allocation for Sunderland. It’s the perfect way to celebrate our 40th year as a world-class manufacturing site. We look forward to seeing Kicks e-POWER hybrid going down the production line with our electrified line up of Qashqai, Juke and LEAF.”

The announcement has been warmly received by Business Secretary Jonathan Reynolds, who was born and raised in Sunderland. He said: “The decision to build this new model in Sunderland is a huge vote of confidence in the UK’s manufacturing expertise and automotive future. I’m excited in what our partnership with industry can achieve so this Government delivers good growth, investment and skilled jobs in every postcode.”

Meanwhile, luxury carmaker McLaren has unveiled plans to pour £500m into the UK and generate 1,000 new roles. The company intends to expand its research and development facility in South Yorkshire, as well as opening a new factory in the UK as part of the investment. It estimates that around 1,000 positions could be created across South Yorkshire and Surrey by 2032.

Nick Collins, chief executive officer of McLaren Group Holdings and McLaren Automotive said: “This investment gives us the platform to grow, develop and build on what makes us distinctive, while investing in the people, technologies and products that will keep us competitive for decades to come.”

Prime Minister Andy Burnham gave the announcement a warm reception, saying: “Their investment will create high-quality apprenticeships, jobs and drive growth far beyond their factory gates. It is how you get skilled work, decent wages and pride back into a place. It’s this kind of partnership between Government and business that will help us reindustrialise communities and make every part of Britain better off.”

The Government is eager to present the investment as a triumph for Britain, which is navigating a precarious economic landscape, partly as a result of the global instability stemming from the ongoing conflicts in the Middle East and Ukraine.