Following the news that Nissan is to commit to manufacturing electrified vehicles at Sunderland and source more batteries in the UK;
David Leggett, Automotive Analyst at GlobalData, a leading data and analytics company, offers his view:
“The Nissan news will boost confidence in the UK’s automotive sector. Nissan’s Sunderland plant is the UK’s largest with most of its output sold in the EU market. By sourcing more batteries in Britain it can better meet post-Brexit rules-of-origin requirements applying to EU shipments and therefore avoid the possibility of attracting 10% tariffs.
“As the auto industry shifts towards a more electrified future – highlighted by the UK government’s intention to ban the sale of combustion engine cars from 2030 – attracting investment in electrified technologies and electric vehicle manufacturing is going to be increasingly important.
“Brexit and associated supply chain issues are far from fully resolved for many companies in the sector, but commitment from a major manufacturer to invest in the UK will lift confidence in the future for the UK’s automotive industry.”