Nissan reported to be in talks with Government about financial support

The under strain car maker is said to be discussing commitments to its Sunderland operation

Car maker Nissan is said to be in advanced talks with the Government over financial support for its Sunderland operation.

Global news service Reuters has reported the Japanese manufacturer is discussing backing in return for commitments to long term investment in its Wearside plant. Grants, tax breaks and subsidies are said to be on the table in exchange for protection of jobs.

The news follows a recent announcement by Nissan that it is looking to partner with Chinese brand Chery – the maker of brands such as Jaecoo – to build its models at Sunderland. It could see Chery vehicles roll off the factory’s production Line One, which was paused earlier this year amid significant restructuring across Nissan.

Such a deal is set against widespread cost saving measures at Nissan, which is closing a number of factories globally and shedding thousands of jobs, including some in Europe. The efforts are in response to hefty losses and intense competition from global rivals.

Nissan’s Sunderland plant employs 6,000 people and is widely seen to be among the most productive in Nissan’s worldwide stable. It has received significant investment in recent years, including spending to support production of the new generation electric Leaf, which began late last year, and a much wider multibillion-pound vision to make the factory a flagship site for electric vehicle making through use of renewable energy and nearby battery production.

However, earlier this year it emerged that Nissan had decided not to produce drivetrains at the nearby Jatco factory, which was announced in early 2025 as the result of a £48m investment plan including £12m of funding from the Automotive Transformation Fund. About 80% of the Jatco facility’s capacity was to be given over to Nissan products, to be used in the building of electric models.

In recent weeks, car makers and MPs have called for the Government to bring forward a review of the Zero Emission Vehicle mandate which legally require rising sales of electric vehicles from manufacturers. Under the rules introduced in 2024 before being relaxed last year, car and van makers must make EVs 80% of the cars they sell by 2030, rising to 100% by 2035.

Nissan did not comment directly on the report of talks with the Government. But in a statement, a spokesperson said: “We are proud of our history in the UK including our manufacturing operations at our Sunderland Plant. We have a strong and collaborative relationship with the UK Government and look forward to continuing to work together moving forward.”

A Government spokesperson said: “Nissan is an important investor and long‑standing partner in the North East and the UK, and we continue to work closely with the company to support jobs, drive growth and secure the future of the automotive sector. We are taking significant action to back British carmakers and protect jobs, including £4bn of capital and R&D funding for zero emission vehicle manufacturing, lowering electricity bills for manufacturers and launching a £2bn Electric Car Grant supporting drivers to save up to £3,750 off the cost of a new EV.

“We’re committed to the ZEV Mandate and we’ve always said we’ll review it to ensure we’re taking a pragmatic and balanced approach that supports British industry and continues to drive investment.”