Nissan warns of Sunderland closure if UK excluded from ‘Made in Europe’ rules

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Nissan has warned the UK government that it would be forced to shut down its plant in Sunderland if Britain was not fully included in the “Made in Europe” manufacturing targets, according to three people with knowledge of the discussions.

Despite heavy lobbying efforts by the UK government, the EU proposals presented on Wednesday require vehicles for corporate fleets and small electric vehicles to be assembled within the bloc, excluding Nissan, Jaguar Land Rover and Toyota, which make vehicles in the UK for the European markets.

Industry executives have warned that the proposed rules would be a huge blow to vehicles and car parts made in the UK since their largest export market is the EU.

The measures were originally designed to save Europe’s struggling €2tn industrial base from competition in strategic sectors, particularly coming from China. But the proposals have divided the car industry, which has a complex and widespread global manufacturing network.

Nissan is one of the largest automotive employers in the UK with about 6,000 workers at its Sunderland factory, which supports another 30,000 jobs across the supply chain. The company has invested £6bn into the plant but its utilisation rate has been hovering at about 30 per cent owing to sluggish demand.

One industry executive warned that if Nissan was “frozen out of access to EU incentives” it could pose “an existential threat”.

Nissan was not immediately available for comment.

A UK government spokesperson said: “The UK is a close and trusted European partner, committed to our shared security and economic co-operation. Now is the time to work together as like-minded partners to boost growth, resilience and economic security.”

While the draft EU act was broadly welcomed in London, officials said they were still seeking “clarity” on how it would affect specific sectors. One official said: “Our position has been clear: this is not the time for protectionism.

“We look forward to working closely with the EU to deliver shared economic growth and advance collaboration on green and digital technologies and enhanced defence capabilities.”