Nissan Cancels Plan to Build EV Drive Unit Factory in Britain Amid Production Review

Bearish (-0.5)Impact: Medium

Published on May 24, 2026 (2 hours ago) · By Vibe Trader

Nissan Motor Co has decided to withdraw its plan to manufacture powertrains for electric vehicles in Britain, according to a source familiar with the matter [1]. This decision comes as the Japanese automaker, described as 'struggling,' is currently reviewing its production and factory numbers [1]. Jacto Ltd, a Nissan subsidiary, had been jointly developing drive units for EV models and had intended to build a factory in Sunderland in 2026 to supply parts to a Nissan assembly plant [1].

The Sunderland plant was slated to support the production of several EV models, including the Nissan Leaf and the Juke, with the latter scheduled for a European rollout in 2027 [1]. Instead of sourcing drive units from the planned UK facility, Nissan is now expected to secure the necessary components for these EV models from Japan [1].

The article does not provide specific financial figures, market reactions, or analyst opinions regarding the impact of this decision. There is also no mention of how this move might affect Nissan's broader EV strategy or its operations in Europe beyond the sourcing change [1].

CONCLUSION

Nissan's withdrawal from building an EV drive unit factory in Britain marks a shift in its production strategy, with sourcing now expected to come from Japan. The decision reflects ongoing reviews of Nissan's manufacturing footprint, but the article does not detail market or financial impacts.

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