Saturday, March 29, 2025
A senior Nissan executive has voiced concerns over the high costs of manufacturing cars in the UK, citing the country’s lack of competitiveness in the automotive sector. Alan Johnson, Nissan’s Senior Vice President for Manufacturing in Africa, the Middle East, India, Europe, and Oceania, explained that the Sunderland plant faces particularly high energy costs, making it one of the most expensive locations to build cars within the Nissan network.
He also highlighted the challenges posed by the overall cost of labour, training, and the limited supplier base in the UK. These factors, according to Johnson, make the UK less viable for car production.
Earlier this year, a late shift was closed at Nissan’s Sunderland factory, which employs around 6,000 people. The decision to cut the shift did not result in job losses, as affected workers were moved to other production lines to optimize efficiency.
Despite these adjustments, Johnson stressed that the UK automotive industry requires more government support to remain competitive. He emphasized the need for further incentives to support the production and sale of electric vehicles (EVs) in the UK.
At a recent hearing before the House of Commons’ Business and Trade Committee, Johnson urged the UK government to do more to foster growth in the EV sector. He welcomed recent regulatory changes introduced by Sir Keir Starmer, which aim to relax restrictions on Zero Emissions Vehicles (ZEVs) in the UK.
In addition to the UK-specific issues, Johnson also discussed Nissan’s broader challenges, including the impact of Donald Trump’s tariffs on the company’s operations. Although he reassured MPs that Sunderland’s impact from these tariffs had been minimal, he acknowledged the significant effect on Nissan as a whole. The 10% tariff on UK imports to the US, as well as the higher rates on cars, steel, and aluminium, continue to affect global operations.
Nissan’s Sunderland plant remains a key player in the region, which accounts for 30% of the North East’s exports. However, Johnson noted that less than 6% of these exports are directed to the US, minimizing the impact of US tariffs on the region’s economy.
