10:34 am, June 22, 2026
Nissan has held talks with the government over potential investment into its Sunderland plant, with any deal likely to be linked to changes to the ZEV mandate.
Car Dealer reported last week that the government’s eco targets could be watered down after Kier Starmer overruled his Net Zero minister Ed Miliband and side with business secretary Peter Kyle, who has been pushing for changes.
It remains to be seen how the PM’s resignation will impact the tweaks, which would see the requirement for 80% of new car sales to be fully electric by 2030 reduced to 50%.
However, if the move does still go ahead, it could be good news for Nissan, who are said to be in talks with ministers over a financial package which could secure the future of the firm’s Sunderland plant.
The FT reports that the Japanese brand is willing to plough fresh investment into the site, but only once the watering down of the ZEV mandate has been rubber stamped.
That investment would be paired with funds from the government, in the form of grants or tax breaks.
While nobody on either side has officially confirmed that talks have taken place, a government spokesman said it was working with the carmaker to ‘support jobs, drive growth and secure the future of the automotive sector’.
The spokesperson added: ‘We are committed to the ZEV mandate and we’ve always said we’ll review it to ensure we’re taking a pragmatic and balanced approach that supports British industry and continues to drive investment.
In response, Nissan pointed to its ‘a strong and collaborative relationship with the UK government’ and said it ‘looks forward to continuing to work together’.
The news comes just weeks after it was announced that Chinese carmaker Chery will be ramping up its presence in the UK by building cars at Nissan’s Sunderland plant.
The two manufacturers announced a non-binding memorandum of understanding earlier this month, which could see Chery utilise spare capacity at the North Eastern facility.
If the deal goes through, Chery cars could be rolling off the Sunderland production line in the 2027 financial year.
Earlier this year, Nissan outlined plans to consolidate its manufacturing operations onto a single production line to ‘assess future opportunities to secure full plant utilisation’.
The change would result in some 900 job losses across Europe, although jobs in Sunderland were said to be safe from the chop.
