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Nissan is considering a strategic expansion by sharing its international production facilities with Dongfeng, a Chinese state-backed automaker. The Japanese car company, now in the middle of a major restructuring, aims to integrate Dongfeng more closely into its global manufacturing network.

This announcement comes as Nissan prepares to cut 11,000 jobs and shut down seven factories worldwide. The company has not revealed where these job cuts and closures will take place, adding uncertainty to its global operations.

Nissan Confirms Commitment to UK Production

At a recent financial conference, Nissan executive Ivan Espinosa reassured the public about the future of the company’s UK site in Sunderland. He confirmed new car models will be launched there and said, “In the very short term, there’s no intention to go around Sunderland.”

Nissan currently employs about 6,000 workers in Sunderland. The UK factory also benefits from a major government-backed investment to build a battery plant for electric vehicles. This facility will supply batteries for Nissan’s Juke and Leaf models.

UK Government Addresses China Trade Concerns

The UK government rejected claims that a new trade agreement with the United States harms Chinese economic interests. The deal lowers tariffs and includes rules requiring the UK to quickly meet US supply chain security standards for steel and aluminum.

Despite these changes, Chinese officials in Beijing have expressed worry that their companies might be excluded from providing goods destined for US markets via the UK.

Nissan’s Global Challenges Grow

The recent announcement raises Nissan’s total planned layoffs to 20,000 since November, representing about 15% of its global workforce of 133,500 employees. The job cuts are part of a broader cost-saving effort that aims to reduce Nissan’s global vehicle production by 20%.

In China, the world’s largest car market, Nissan faces strong competition. Despite a 20-year joint venture with Dongfeng and a shared plant in Wuhan, Nissan’s brands struggle to gain a significant market share.

Leadership Changes and Financial Strain

Nissan has also experienced leadership upheaval. Earlier this year, merger talks with Honda collapsed over financial disagreements. Subsequently, Nissan replaced CEO Makoto Uchida with Ivan Espinosa, who has a background in motorsports and strategic planning.

Financial pressures continue: Nissan reported a net loss of 670 billion yen ($4.6 billion or £3.4 billion) for the last fiscal year. This loss is partly linked to trade barriers imposed under former US President Donald Trump.

UK Investment Fuels Electric Vehicle Ambitions

Nissan’s electric vehicle plans received a boost when AESC, its battery partner, secured £1 billion ($1.3 billion) from the UK government. The funds will support a new battery manufacturing plant in Sunderland, aiming to create “high-quality, well-paid jobs,” said Chancellor Rachel Reeves during a site visit.

This investment signals a strong commitment to the UK as a hub for electric vehicle production despite Nissan’s global challenges.

Nissan’s evolving partnership with Dongfeng and its focused investment in electric vehicle technology underline its efforts to navigate a difficult automotive market. While job cuts and factory closures weigh heavily, Nissan’s moves in the UK and China reveal strategic priorities for survival and growth.