CGN Business Journal: Nissan Supplier Pullback Shows EV Demand Pressure Reaching the Factory Floor
JATCO’s reported Sunderland cancellation points to softer EV demand reaching suppliers, factory plans and industrial policy.
SAN FRANCISCO | Nissan’s supply-chain reset reached another marker Sunday after Reuters reported that subsidiary JATCO scrapped a plan to make electric-vehicle powertrains in Sunderland, Britain.
The project had been announced in 2025 as a 48.7 million-pound investment to produce up to 340,000 EV powertrain units a year. Reuters, citing Nikkei, said the plan was canceled amid weaker demand for Nissan EVs in Europe.
The pullback follows a wider Nissan restructuring that includes reducing the number of global auto production plants and reviewing powertrain facilities. The decision shows how softer EV demand can move beyond showroom sales and into factories, suppliers and local industrial plans.
For the U.K. auto sector, the cancellation also lands inside a broader debate over EV mandates, industrial incentives, battery supply and the pace of consumer adoption.
Additional Reporting By: Reuters
What this means
The follow-up questions are whether Nissan identifies a replacement supply plan, whether U.K. officials adjust support for EV manufacturing, and whether other suppliers slow expansion plans.