Japanese automaker Nissan says it is considering a major shift in its global operations by potentially sharing manufacturing facilities with its Chinese state-owned partner, Dongfeng.
The move is part of a broader restructuring plan following Nissan’s announcement this week of 11,000 additional job cuts and the closure of seven plants worldwide. While the company has not disclosed specific locations for the closures, it has reaffirmed its commitment to its UK operations in Sunderland, where around 6,000 people are employed.
“We have new vehicles coming to Sunderland… There are no plans in the short term to scale back,” said Ivan Espinosa, Nissan’s new CEO, during a Financial Times conference on Thursday.
Tighter Ties with Dongfeng Amid Global Pressure
Nissan’s openness to deepening ties with Dongfeng Motor Corporation—a Chinese government-owned firm it has worked with for over two decades—comes as the automaker struggles with weak sales, particularly in China and the U.S., its key markets.
The partnership could allow Dongfeng to operate within Nissan’s global production system, potentially improving efficiency and boosting competitiveness in the face of a rapidly evolving global auto industry.
The announcement also comes at a time of heightened scrutiny over UK-China trade ties, especially following the UK’s updated tariff deal with the U.S., which some fear may disadvantage Chinese investments. However, British officials have insisted that “no veto on Chinese investment” exists in the agreement.
Restructuring in Motion
The newly announced job cuts bring Nissan’s total layoffs since November 2024 to 20,000, or 15% of its global workforce. The company is aiming to reduce global production by 20% amid slumping profits. Nissan recently reported an annual loss of 670 billion yen ($4.6 billion USD), citing U.S. tariffs as a key pressure point.
Leadership instability has also rocked the company. Former CEO Makoto Uchida was recently replaced by Espinosa following failed merger talks with Honda, which would have involved a multi-billion-dollar deal.
Battery Expansion in the UK
Despite the turmoil, Nissan’s electric vehicle future in the UK appears secure. Its battery partner, AESC, has secured a £1 billion ($1.3 billion USD) investment from the UK government to construct a new battery plant in Sunderland. The facility will support production of EV models like the Nissan Juke and Leaf.
Visiting the site, UK Chancellor Rachel Reeves praised the investment as a boost for “high-quality, well-paying jobs in the North East.”
Conclusion
Nissan’s willingness to integrate its Chinese partner Dongfeng into its global manufacturing strategy marks a significant pivot as the automaker battles industry headwinds. As job cuts and plant closures unfold, the future of strategic locations like Sunderland will likely depend on how well Nissan adapts its production model to meet the demands of both EV innovation and international competition.
