Two major automakers signaled this week they would increase their investment in U.K. manufacturing as they seek to expand their lineup of vehicles.
Nissan Motor Corp. on Tuesday announced a 170 million British pounds (nearly $229 million at the time) investment at its plant in Sunderland to build its new Nissan Kicks e-Power hybrid B-segment crossover there. Meanwhile, McLaren Automotive on Wednesday announced plans to invest 500 million pounds to increase research and development, and consider a new vehicle model, among other projects.
The investments come as the United Kingdom seeks to attract a greater automotive manufacturing industry presence. In the past year, the government has committed to giving businesses in the sector up to 4 billion pounds through a grant program designed to bolster investments in vehicle electrification. While neither Nissan nor McLaren’s investments are tied to these grants, the U.K. government and industry groups celebrated both as moves that build on the country’s overall industrial strategy.
Read more about each investment below.
Nissan adds vehicle to production hub
Nissan Motor Corp. said its 170 million British pounds investment would help bring an additional vehicle to its European vehicle production hub in the U.K.
The automaker will build its new Nissan Kicks e-Power hybrid B-segment crossover at the Sunderland plant in the northeast of England joining the current lineup of Qashqai, Juke and the Leaf compact electric vehicle, the company said in its Sept. 16 release.
It will be the 10th model to be built at Nissan’s Sunderland plant, which this year celebrates its 40th anniversary. In recent years, the automaker has also invested in making the facility, which is already the largest single-site car manufacturing plant in the U.K., into an electric vehicle manufacturing hub. In April, Nissan announced the Sunderland plant would also produce the third-generation Nissan Juke EV.
The European debut of the second-generation Kicks model European adds another e‑Power hybrid model to Nissan’s lineup in the region’s markets.
The Kicks model is currently built in Japan, Mexico and Brazil for global sales and has so far sold more than 1.8 million units in more than 70 countries.
“This is fantastic news for our European region and demonstrates the agility and speed with which we can bring new models to new markets,” Massimiliano Messina, chairperson of Nissan’s AMIEO region, said in a company statement.
The move has also been welcomed by the U.K.’s industry representative, the Society of Motor Manufacturers and Traders, which said it shows a confidence in U.K. automotive manufacturing, per its Sept. 16 statement.
“But to unlock that potential, we must continue to strengthen our competitiveness – supporting a healthy market, tackling the high cost of business, especially energy and additional employment costs – and ensuring trade works for manufacturers,” said SMMT chief executive Mike Hawes. “Do this and yet more companies will choose to build the next generation of vehicles here in Britain,” he added.
McLaren boosts R&D
McLaren Automotive said Wednesday it would invest 500 million pounds to “anchor its future” in the U.K.
“The investment will enable McLaren Automotive to expand its production capability, increasing vehicle output to ensure the next generation of McLaren Automotive cars are built in Britain including a newly confirmed performance SUV. This will be made possible by a new vehicle assembly facility planned in the UK,” McLaren said in a press release.
The company said it would also work to design and build powertrains in house “for the first time in its history.” McLaren currently operates a carbon-fibre manufacturing and research facility in the northern region of South Yorkshire, a design and innovation centre at the McLaren Creation Centre in Bicester, and a testing and vehicle development facility in the Midlands. Its headquarters are in Surrey, south of London.
The luxury performance carmaker pledged to create 1,000 new jobs in the U.K. by 2032 with its investment, the government said in a Sept. 16 release. The government also said the investment could unlock up to 3,000 additional jobs across the sector.
“Their investment will create high-quality apprenticeships, jobs and drive growth far beyond their factory gates,” said U.K. Prime Minister Andy Burnham in a statement. “It’s this kind of partnership between government and business that will help us reindustrialize communities and make every part of Britain better off,” he added.
The SMMT also welcomed the move, with Hawes saying: “This commitment strengthens our position as a global leader in high-performance automotive design, engineering and advanced manufacturing, anchoring new products, skills and technologies in Britain.”
