Major carmaker ‘on brink of collapse’ lobbies Starmer to relax EV sales target as ‘mega-merger’ with rival falls through
NISSAN is desperately seeking changes to the UK government’s EV sales targets – with the car giant seemingly on the brink of collapse.
The Japanese manufacturer has suffered a decline in sales in recent years, brought about by poor management decisions and a failure to adapt to the growing electric vehicle market.
Nissan, one of the world’s largest car manufacturers, has struggled under growing competition from Chinese brands like BYD.
Worries are further exacerbated by the Zero-Emission Vehicle, or ZEV, mandate, requiring 28% of car sales to be electric in 2025 — or face fines of £15,000 for every car they fall short on.
Currently, Nissan’s sales of electric cars, such as the Leaf, are lagging behind their rivals, putting them at risk of significant penalties.
Naturally, the brand is pushing for a relaxation of these rules – not least because Nissan runs the UK’s largest car factory in Sunderland, and a collapse for the manufacturer could spell disaster for the 6,000 British workers employed there.
According to a report from The Times, Nissan’s global boss, Makoto Uchida, spoke to Prime Minister Sir Keir Starmer at an autumn investment summit, raising concerns about the impact of the government’s rules on their business.
Nissan warned ministers, including Business Secretary Jonathan Reynolds, that the current rules could put the Sunderland plan at risk.
To this end, Nissan asked the government to pause the rules for two years, suggesting they make them “monitoring only” instead of enforcing fines.
The government has since launched a review of the rules, with a consultation closing soon.
Reynolds, who is from the northeast and has a personal connection to Sunderland, has hinted that the rules might be relaxed.
He said he’s worried about low demand for electric cars and wants to ensure they’re made in the UK to protect jobs in the automotive sector.
Latest figures show Nissan’s issues around electric car sales in the UK, with fewer than 10% of its UK sales electric – with brands like BMW and Mini outselling them.
Worse still, if the ZEV rules remain as they are, Nissan could face tens of millions of pounds in fines.
Nissan’s problems aren’t just limited to the UK; their sales have also dropped in key markets such as China and the US.
In December, the Japanese car manufacturer discussed a possible “mega-merger” with Honda – but these negotiations have since fallen through.
The original idea was to combine forces, along with Mitsubishi, to create the third-largest global carmaker in sales volumes after Toyota and Volkswagen.
But recent reports suggest Honda was looking to change the conditions and make Nissan a subsidiary – something Nissan felt went against their agreement.
Industry insiders say Nissan is open to mergers with other automotive or technology firms – with Foxconn, also known as Hon Hai Technology Group, a potential candidate.
Nissan, which has been around for some 91 years, started selling cars in the UK in 1968, under the Datsun brand.
Since then, they’ve found success with a diverse range of models, including the Micra, Primera and X-Trail.
However, it is the Qashqai—rolling off Sunderland’s production lines every two minutes—that revolutionised the UK’s crossover SUV market and secured its position as one of the nation’s all-time best-selling cars.