Nissan to merge Sunderland production lines, cut 900 European jobs

Key facts

• Nissan will merge two production lines into one at its Sunderland plant.
• 900 jobs will be cut across Europe, including fewer than 50 in UK office roles.
• No job losses are expected from the Sunderland line merger itself.
• The RE:Nissan recovery plan drives the restructuring.
• Nissan is in talks to cut about 10% of its European workforce.
• Plans include closing part of a warehouse in Barcelona and importing cars to Nordic countries.
• Nissan has held discussions with Chinese automaker Chery about using the spare line.
• Chery already assembles cars at a former Nissan plant in Barcelona.

Sunderland consolidation opens door to third-party partnership

Nissan will stop using one of its two production lines at its Sunderland plant, merging the assembly of the Leaf, Juke and Qashqai models onto a single line as part of a broader European restructuring that will eliminate 900 jobs. The Japanese carmaker confirmed that no jobs would be lost directly from the line merger, but acknowledged that fewer than 50 UK-based office roles are among the 900 European cuts. The company said it is in talks to reduce its European workforce by approximately 10% and plans to partially close a warehouse in Barcelona while shifting car imports to Nordic countries. A Nissan spokesperson said the changes fall under the RE:Nissan recovery plan, designed to create “a leaner, more resilient business that adapts quickly to market changes.” The company has begun discussions with European employees to simplify structures and “ensure we operate in a sustainable and profitable way.”

Consolidation frees capacity for potential partner

By consolidating work onto a single line, Nissan frees the second line for another manufacturer to build its own vehicles, absorbing surplus capacity at the Sunderland site. The plant currently operates well below its potential despite producing three models. Nissan has held talks with several companies about using the spare line, including Chinese automaker Chery, owner of the Jaecoo and Omoda brands. Chery has been present in the UK since late 2024 and its sales have grown rapidly. The company is already preparing to assemble cars at a former Nissan plant in Barcelona. Chery was unavailable for comment, but its UK head, Victor Zhang, previously told the BBC that the company is evaluating whether to establish a manufacturing base in the UK.

European job cuts target 10% of workforce

The 900 job cuts across Europe represent about 10% of Nissan’s European workforce, according to the company. The reductions include plans to close part of a warehouse in Barcelona and adjust import routes for Nordic markets. A small number of the cuts — fewer than 50 — will affect UK-based office roles, but Nissan stressed that the production line merger in Sunderland will not result in any job losses at the plant itself. The company said it has started consultations with European employees as part of the restructuring. “We have also announced that we will consolidate production from two lines to one at our Sunderland plant as we assess future opportunities to secure full plant utilisation,” a spokesperson said.

RE:Nissan recovery plan drives restructuring

The restructuring is part of Nissan’s RE:Nissan recovery plan, which aims to streamline operations and improve profitability. The company described the changes as necessary to create a “leaner, more resilient business that adapts quickly to market changes.” Nissan has been grappling with overcapacity at Sunderland, where the plant runs well below its potential. The line merger is intended to reduce fixed costs while maintaining the same output, with the freed line available for a partner. The company’s discussions with Chery and other potential partners reflect a broader strategy of sharing production capacity to offset declining utilisation rates.

Chery emerges as potential partner for Sunderland line

Chery, a Chinese automaker that owns the Jaecoo and Omoda brands, has been in talks with Nissan about using the spare production line in Sunderland. Chery entered the UK market in late 2024 and has seen rapid sales growth. The company is already assembling cars at a former Nissan plant in Barcelona, suggesting a deepening relationship between the two manufacturers. Victor Zhang, Chery’s UK head, has previously indicated that the company is evaluating whether to set up a UK manufacturing base. If Chery commits to Sunderland, it would mark a significant expansion of Chinese auto manufacturing in the UK and provide a new lease of life for the plant’s second line.

Uncertainty lingers over job impact and future output

While Nissan has stated that no jobs will be lost from the line merger, the overall European cuts of 900 roles — including some UK office positions — underscore the scale of the restructuring. The company has not disclosed how many of the 900 cuts will come from each country or function. The consolidation raises questions about the long-term output of the Sunderland plant. If a third-party partner does not materialise, the second line could remain idle, potentially affecting future investment decisions. Nissan said it is assessing “future opportunities to secure full plant utilisation,” but has not provided a timeline for securing a partner.

Restructuring reflects broader industry pressures

Nissan’s moves come amid a challenging period for the global auto industry, with manufacturers facing overcapacity, rising costs, and the transition to electric vehicles. The Sunderland plant, which produces the Leaf, Juke and Qashqai, is a key part of Nissan’s European operations. The RE:Nissan plan is the company’s latest effort to return to sustainable profitability after years of margin pressure. By merging lines and cutting jobs, Nissan aims to reduce its cost base while maintaining production flexibility. The outcome of the talks with Chery and other potential partners will be crucial in determining whether the Sunderland plant can operate at full capacity again, and what role it will play in Nissan’s European future.

The bottom line

• Nissan will merge two production lines into one at Sunderland, with no job losses from the merger itself.
• 900 European jobs will be cut, including fewer than 50 UK office roles, as part of the RE:Nissan recovery plan.
• The freed production line is available for a third-party partner; Nissan has held talks with Chinese automaker Chery.
• Chery already assembles cars at a former Nissan plant in Barcelona and is evaluating a UK manufacturing base.
• The restructuring includes closing part of a Barcelona warehouse and shifting car imports to Nordic countries.
• Nissan aims to create a leaner, more resilient business that adapts quickly to market changes.