Nissan halts all-electric Qashqai development at Sunderland plant

Nissan has quietly halted development of a fully electric version of the Qashqai at its Sunderland factory, the site of the UK’s largest car plant, according to a report by Reuters cited by The Guardian. The company had committed to building a full EV version of the Qashqai in 2023, a move that the British government at the time said showed the UK was a global electric vehicle manufacturing hub.

The carmaker is in the midst of a sweeping cost-cutting programme after reporting steep losses for the fiscal year ending March. The restructuring has already led to the closure of seven factories and the loss of 20,000 jobs worldwide. In April, Nissan said it was closing one of two production lines at Sunderland because of faltering demand, and that it was “looking at options” for the factory and its 6,000 workers.

Nissan already produces the fully electric Leaf at Sunderland and in April announced that an all-electric Juke would also be built there. Even if the company restarts the Qashqai EV project, Reuters reported, the model would not reach the market until the early 2030s. The company said it remained committed to expanding its electrified lineup, which includes hybrid models, and that the European market had experienced “significant volatility” in EV demand, prompting it to pursue a “balanced” electrification strategy.

The Qashqai accounts for about 45% of Nissan’s 330,000 car sales in Europe. The model is sold in petrol and hybrid versions. The company is now in talks with the British government about securing financial support to plan the future of the Sunderland plant. Earlier this month, it signed a non-binding memorandum of understanding with China’s Chery to explore contract manufacturing vehicles at the factory.

The news emerged on the 10th anniversary of the UK’s Brexit referendum. The Sunderland factory became a symbol of the debate over Brexit’s impact on British industry after the vote. In 2016, the plant produced 507,000 cars, just shy of its 2012 record. Last year, it managed 273,000. The Guardian has approached Nissan for comment.