Iconic car firm axes plans for two new EVs – hours after sparking fears over future of huge UK factory
AN ICONIC car manufacturer has ditched plans to release two EV models.
Nissan was set to produce the duo in the United States but has since axed the planned launch.
The Japanese company had hoped to release four electric vehicles at its factory in Canton, Mississippi by 2028.
But development of the manufacturer’s sedan has now been shelved.
Shifting market dynamics in the US as well as slowing demand for EVs have been cited for the decision.
The move reflects broader industry caution as automakers reassess EV strategies in response to weaker-than-expected demand and evolving regulatory landscapes.
Nissan has made headlines in recent months as fears over the fate of the Sunderland plant have grown.
The factory is the brand’s only remaining European facility and could be axed in the company’s £2billion saving initiative.
BRINK OF COLLAPSE
It comes as Nissan is looking to sure up its future by growing a partnership with its former rival after the reported collapse of a three-way alliance.
Nissan was one-third of a strategic deal with Mitsubishi and Renault to share financial backing and expand all their markets in Europe, Japan and the US.
The agreement dates back to 1999 but now could be on the brink of collapse.
A report from the Financial Times cites two anonymous “senior officials” at the firm suggesting that Renault is looking to reduce its financial stake in the Japanese carmaker.
The withdrawal of funding means, according to the same sources, that Nissan could require support from the Japanese or US governments within the next year just in order to stay afloat.
One of the officials said: “We have 12 or 14 months to survive.
“This is going to be tough.
“And in the end, we need Japan and the US to be generating cash.”
Nissan has already cut 9,000 jobs across its global operation, while its CEO Makoto Uchida took a 50% pay cut in an economy drive.
The business is working through an emergency recovery plan, which will see it cut output by 20% and slash around £2bn in costs.
Its struggles have partly been blamed on the lack of a strong hybrid lineup, which has helped rivals like Toyota and Honda through the global collapse in EV sales.
In a press conference earlier this month, Mr Uchida said: “This has been a lesson learned and we have not been able to keep up with the times.
“We weren’t able to foresee that hybrid electric vehicles and plug-in hybrids would be so popular.”