On May 24, 2026, Nissan Motor reported that its subsidiary JATCO has scrapped plans to manufacture electric vehicle (EV) powertrains at its Sunderland facility in Britain. This decision follows disappointing demand for Nissan's EV models in the European market.

Initially, in January 2025, JATCO had announced plans to invest £48.7 million ($65.39 million) to produce up to 340,000 powertrains annually, which would combine the motor, inverter, and reducer into a single system. However, due to declining sales and increased competition in the global EV market, Nissan has been forced to reconsider its production strategy.

In the previous year, Nissan revealed a restructuring plan aimed at reducing its global production network from 17 plants to 10 and conducted a thorough review of its powertrain operations. The Sunderland location remains vital for Nissan, which has previously committed to EV production at the site, partnering with battery manufacturer AESC.

As of now, neither Nissan nor JATCO has provided further comments regarding the cancellation. This shift reflects a broader trend among automakers reevaluating their electric vehicle investments in light of changing market dynamics.