What’s going on at Nissan?
May 13, 2025 by Siobhan Doyle
Car changing is a big deal
Nissan is undergoing a major overhaul, with significant job cuts, factory closures, and a shift in strategy. Here’s how these changes could impact consumers and the future of the Japanese car brand.
Amid falling global sales, rising costs, and failed merger talks, Japanese car manufacturer Nissan is implementing drastic changes in an attempt to stabilise its future. It has said it will cut 11,000 jobs globally and shut down seven factories as part of a broader plan to cut costs.
Combined with cuts announced in November, the total number of layoffs now stands at 20,000 – around 15% of its global workforce of 133,500. The company plans to reduce its total number of manufacturing plants worldwide from 17 to 10 by the end of 2027.
Around two-thirds of these job losses will affect manufacturing roles, while the rest will hit sales, administrative staff, researchers, and contract workers. The precise locations of the job cuts have not been confirmed, raising questions about the future of major sites, including the Sunderland plant in the UK, which employs around 6,000 people.
Nissan says a detailed study is underway to determine which factories will be affected.
Sunderland’s uncertain future
While uncertainty looms over the Sunderland site, there are mixed signals. Nissan CEO Ivan Espinosa has confirmed that more electric cars – such as the new Nissan Leaf – will be assembled at the facility, aligning with the company’s global pivot toward EVs. However, plans to build a battery and EV factory in Japan have been scrapped, and overall investment in new infrastructure is being reduced.
Sunderland had previously been a cornerstone of Nissan’s UK presence, receiving political backing and significant government funding. In 2021, the UK government reportedly contributed around £100m toward the construction of a battery gigafactory in collaboration with Chinese firm Envision. Yet with current factory closures pending, the fate of Sunderland remains under watch.
Poor performance in key markets
The restructuring comes amid declining performance in major markets. Nissan has been hit particularly hard in China, where its sales dropped 12% last year due to fierce competition from local EV manufacturers such as BYD. In the US, another key market, heavy discounting, inflation, and high interest rates have all taken a toll.
Globally, the company reported a staggering annual loss of 670 billion yen (around £3.4bn). Adding to the pressure are tariffs introduced under US President Donald Trump, which imposed a 25% tax on cars and car parts imported into the US. However, UK-made cars benefit from a reduced 10% tariff under a bilateral agreement.
Leadership reshuffle and failed merger
Nissan’s corporate leadership has also undergone a shake-up. After a failed merger attempt with fellow Japanese carmakers Honda and Mitsubishi earlier this year, then-CEO Makoto Uchida stepped down. Ivan Espinosa, the company’s former chief planning officer and head of its motorsports division, has taken the helm.
The merger, had it succeeded, would have created the world’s fourth-largest carmaker with combined revenues exceeding $60bn (around £48bn). The collapse of these talks represented a major strategic setback, as the alliance was intended to strengthen the companies’ positions in increasingly competitive global markets.
The impact of layoffs on consumers
While Nissan’s restructuring is largely a business-focused decision, the widespread layoffs and plant closures are likely to have ripple effects on consumers. With plant closures and reduced production capacity in the wings, customers in the UK could face longer wait times and potential shortages of popular models such as the Juke and Qashqai.
As Nissan focuses more on electric cars, such as the Leaf and the Ariya, options for traditional combustion models may decrease. The company’s smaller production volume could also drive up prices, particularly for EVs.
There’s also the question of brand loyalty. Job cuts in customer support may also lead to slower response times and reduced after-sales services. Meanwhile, ongoing layoffs and plant closures could undermine consumer confidence, making potential buyers wary of the brand’s stability.
These challenges could affect how people view Nissan and whether they choose to buy its cars, so the company will need to balance saving money with continuing to meet customer expectations.
What cars are built at the Sunderland plant?
Nissan’s Sunderland plant is the largest car manufacturing facility in the UK and produces three key Nissan models:
Nissan Qashqai
This is a compact SUV known for its practicality, comfort, and efficient engines. It’s one of the UK’s best-selling cars and popular with families. While this car has a practical, solid interior, boot space is a bit limited.
Nissan Juke
A small crossover SUV with bold styling and a sporty feel. It’s aimed at younger drivers looking for something compact but distinctive. While its looks stand out, the interior feels quite cramped.
Nissan Leaf
A fully electric hatchback that was one of the first mainstream EVs. It offers zero-emissions driving and is ideal for city commutes. Its E+ models have good range, but alternatives are roomier in the back.
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