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JATCO, a subsidiary of Nissan Motor Co., has abandoned plans to manufacture electric vehicle (EV) powertrains at its Sunderland plant in the United Kingdom, Nikkei and Reuters reported on May 24, 2026.
The project, announced in January 2025, had envisaged a £48.7 million investment to produce up to 340,000 integrated powertrain units a year (motor, inverter and reducer). The decision follows weak demand for Nissan’s EVs in Europe and broader sales weakness in key markets such as the United States and China, which prompted Nissan to cut its global vehicle production footprint from 17 plants to 10 and to review powertrain operations.
Sunderland remains an important Nissan manufacturing hub and the company has worked with battery maker AESC to support EV production there.
The cancellation is part of a wider industry reassessment of capital-intensive EV projects amid slowing demand; other automakers, including Honda, have recently paused or delayed major EV investments in North America.
Nissan and JATCO had no immediate public comment on the report.

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