Nissan is reportedly indicating that its manufacturing plant in Sunderland, UK, could be at risk of closure if the United Kingdom is not included in the EU's new "Made in Europe" regulations governing electric vehicle production. These rules, part of the proposed Industrial Accelerator Act (IAA), would restrict public subsidies intended to accelerate the development of electric vehicles to those manufactured within EU member states. This approach aims to fortify the European market against low-cost competition, particularly from China, and was recently announced by EU industrial strategy commissioner Stéphane Séjourné.

The UK car industry has expressed strong concerns regarding the potential fallout from these new proposals, with industry representatives highlighting the threat they pose to the UK's substantial £70 billion annual trade with Europe. The UK's exclusion from the proposed rules could have severe implications not only for Nissan but for the broader UK automotive sector, which has already been facing numerous challenges stemming from post-Brexit trade conditions. Companies like Nissan may struggle to compete if they do not have access to crucial EU incentives designed to support electric vehicle production and innovation.

Nissan's warning has prompted urgent conversations within the UK government, as the automotive sector is a significant contributor to the national economy and job market. The company has conveyed its deep concerns that being shut out from EU subsidies could present what one executive described as an "existential threat" to its operations in the UK. This highlights the pressing need for the UK government to engage in negotiations with the EU to find a solution that supports the country's manufacturing industry and secures jobs going forward.