Japanese automaker Nissan’s Sunderland factory will soon benefit from a nearby supply of up to 340,000 electric vehicle (EV) powertrains annually, thanks to a new JATCO Ltd. manufacturing facility.
JATCO, a global leader in automatic transmissions, announced on Thursday that the plant is slated for completion in 2026.
The project is backed by a British government grant as part of the UK’s stringent EV mandates aimed at transforming its auto industry.
This development aligns with Nissan’s $1.4 billion investment in 2023 to produce electric versions of two car models at its Sunderland plant.
“Welcoming a key supplier to the North East of England provides a big boost to the efficiency of our supply chain,” said Alan Johnson, Nissan’s senior vice president for manufacturing, supply chain, and purchasing in the AMIEO region (Africa, Middle East, India, Europe, and Oceania).
The 138,840-square-foot facility represents a £48.7 million ($59.5 million) investment and is expected to create up to 183 jobs in Sunderland, strengthening the region’s position in EV manufacturing
Nissan, like other legacy automakers, is contending with increasing competition from Chinese EV manufacturers. To stay competitive, the company is reportedly in talks to merge with fellow Japanese automaker Honda by 2026. It has also announced plans to cut jobs and reduce global manufacturing capacity to lower costs.
JATCO’s new UK facility will join its other international production plants in Mexico, China, and Thailand, further bolstering its role in the EV supply chain.
This move underscores the growing importance of localized manufacturing to meet the surging demand for electric vehicles, while also highlighting the UK’s commitment to supporting the EV transition through strategic investments.
