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Saturday, December 27, 2025

Electric Nissan Leaf production begins at Sunderland as plant’s fate hinges on EV sales

Sunderland production restart for the third-generation Leaf underscores Nissan’s broader UK electrification push amid company-wide cost cuts

Business & Markets 6 days ago
Electric Nissan Leaf production begins at Sunderland as plant’s fate hinges on EV sales

Production of the all-new Nissan Leaf began today at Britain’s largest car factory in Sunderland, a development Nissan calls a momentous occasion as the plant’s future—and the broader UK operation—tilts on the success of its electric model line.

The start of third-generation Leaf production marks a pivotal moment for Sunderland, which has long been a centerpiece of Nissan’s UK manufacturing. The company has invested about £450 million across its UK operations and supply chain to retool for EV assembly, a package that includes a newly built AESC battery gigafactory just across the road to provide next-generation cells for the Leaf and other Nissan electrics. The factory overhaul features an expanded lineup and new manufacturing practices, with automation and data-driven processes shaping work in the Press, Body, and Paint Shops. Nissan describes the Leaf as the linchpin of its UK electrification strategy and a milestone in the broader EV36Zero plan, which combines EV manufacturing, battery production and renewable energy.

Massimiliano Messina, chair of Nissan Africa, Middle East, India, Europe and Oceania, said the all-new Leaf is a smart, sleek and aerodynamic car that captures the energy of a new generation and “sets the stage for Nissan’s next chapter.” He added that Leaf brings to life Nissan’s world-first EV36Zero vision, which aims to align EV manufacturing with battery production and renewable energy.

To ready Sunderland for its most advanced vehicle yet, Nissan embarked on a broad transformation of the site. The Leaf project involved the complete modernization of the plant, including the introduction of intelligent use of big data, virtual reality and digital mapping across the line. The facility now relies on 78 high-tech robots in the Body Shop, an automated laser welding facility, and 137 new press dies used to form the Leaf’s body panels. The company also emphasized workforce development, providing 360,000 hours of training to its 6,000-strong team to build the new model. AESC’s battery gigafactory, built nearby, is central to supplying the next-generation packs that deliver improved energy density, range and performance for the Leaf.

The Leaf’s price tag reflects a broad government incentive program designed to accelerate UK EV adoption. With the full £3,750 Electric Car Grant, the car starts at £32,249 for the Engage trim once Band 1 discounts are applied. Nissan says the affordability of the third-generation Leaf is a deliberate part of its broader cost-cutting effort to deliver a more market-focused and brand-oriented product lineup. James Taylor, Nissan GB managing director, said, “We’re absolutely delighted to be able to confirm Leaf’s pricing at £32,249 including the electric car grant, which will deliver an accessible route to EV ownership for our customers.”

The Leaf is part of a broader strategic push at Nissan as it seeks to shore up demand amid tougher global market conditions. The company has faced near-term headwinds, including a record net loss of about £3.8 billion last year and a plan announced in May to cut costs through the closure of seven factories and the loss of around 20,000 jobs globally. Sunderland has been spared the ax, but the plant’s survival and the fate of the wider UK operation now rest heavily on how well the Leaf, alongside two other new EVs in the same generation—the Micra EV and the forthcoming Juke EV—perform at the sales counter. The government stepped in under the Re:Nissan Plan, backing Nissan with a £1 billion loan to safeguard workers at Sunderland and maintain a robust UK supply chain.

A broader view of the company’s recent trajectory shows the extent of pressure: external observers have pointed to fierce competition from cheaper Chinese EVs that have reshaped the global market. Former Nissan chief executive Makoto Uchida has acknowledged that the company was slow to keep pace with electrification trends, a factor cited in assessments of the group’s debt and turnaround challenges. A Financial Times report in December 2024 cited a senior Nissan official warning that the company had “12 to 14 months to survive” amid those pressures. In this context, the Leaf’s success in Sunderland is more than a product launch; it’s a litmus test for Nissan’s ability to restore profitability and sustain UK manufacturing pride.

The start of Leaf production also reinforces Nissan’s broader employment footprint in the UK. Beyond Sunderland’s 6,000 roles, the company says its UK operations—encompassing NTCE, its design center in Paddington, and its supplier network—support roughly 7,000 jobs directly and around 30,000 jobs in the wider UK supply chain. The plant’s revival has become a central pillar of the Re:Nissan strategy, which ties together automotive output with UK-based battery manufacturing and energy initiatives.

The Leaf’s sales legacy in the UK fuels a sense of continuity for Sunderland. Since its 2010 debut, Leaf has logged around 71,000 UK sales, with the model’s production marking a significant portion of the nearly 250,000 Leafs built at Sunderland over about 15 years. While the current model’s performance remains to be seen, the company views the Leaf as crucial to stabilizing the site’s future during a period of substantial transformation for Nissan and the UK auto sector. Some observers note the broader challenge of remaining competitive as automakers navigate the immediate post-pandemic supply constraints, the rapid shift to EVs, and the need to maintain skilled, well-trained workforces on increasingly automated production lines.

As Sunderland enters a new phase of EV manufacturing, Nissan’s leadership emphasizes a long-term commitment to the UK. The plant’s adaptation to EV production, its proximity to the dedicated battery gigafactory, and the continued investment in its workforce together form a framework that the company hopes will accelerate a broader recovery for its UK operations and for the British automotive industry at large.


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