Japanese auto giant’s investment is a win for UK government, which is seeking job-creating projects after departure from the European Union.
Japanese carmaker Nissan and two partners have announced plans to invest $1.4 billion to produce a new model of an all-electric vehicle and batteries in northeast England.
This is being seen as a major victory for the UK government’s efforts to attract jobs and investment following the country’s departure from the European Union.
Nissan said on Thursday it will build its next generation all-electric vehicles at the company’s plant in Sunderland, creating more than 6,200 jobs at the factory and its suppliers.
As part of the project, Envision AESC will build the UK’s first “gigafactory,” supplying next generation batteries for the new cars.
Prime Minister Boris Johnson described the project as a “major vote of confidence in the UK.”
Thursday’s announcement marks a turnaround for Nissan, which had threatened to leave the UK after Brexit because of concerns about increased tariffs and red tape.
But freed from EU competition rules, the government is now able to offer financial incentives to attract investment.
Nissan chief operating officer Ashwani Gupta declined to say how much financial backing the government had given the project.