Major car brand would be ‘mad’ to close UK plant as Stellantis axes Luton factory and BMW delays £600m EV boost
A former Nissan boss has warned that the Japanese car manufacturer would be “mad” to pull out of the UK amid concerns about the future of automotive manufacturing in the UK.
Dr Andy Palmer, who was instrumental in the rollout of the Nissan Leaf, described the brand’s current position as “extraordinary” given its previous leadership in electric vehicle technology.
His comments come amid growing concerns about the future of automotive manufacturing in Britain, with several major manufacturers reconsidering their UK operations.
Palmer’s assessment offers a stark view of both Nissan’s strategic position and the broader challenges facing the UK’s automotive sector.
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The former Nissan chief was unequivocal when asked if Nissan might leave the UK, stating: “They’d be mad if they did.
“The easiest thing to do if you want to make life easier for yourself, is to tell the Government you’re going to leave unless you’re given something. I’ve been doing that with governments around the world since 1990,” he told Car Dealer Magazine.
Palmer suggested the current government is vulnerable to such pressure, noting that they have “forgotten how to govern”.
His comments follow significant upheaval at Nissan, including the recent departure of CEO Makoto Uchida and the collapse of a proposed merger with Honda.
He dismissed suggestions that former CEO Carlos Ghosn’s controversies were responsible for Nissan’s EV decline, stating: “The reason that Nissan is no longer leading in EVs has nothing to do with the distractions around Carlos Ghosn. They had already started departing EVs under Ghosn’s leadership.”
“Nissan has invented over and over again in the past. Did you know Nissan invented the hybrid? But then it ceded that technology to Toyota.”
Palmer said the company was “in a very bad shape” and had “virtually given up on Europe” because of its lack of electric vehicles.
Nissan’s situation reflects broader challenges in UK automotive manufacturing, with Vauxhall owner Stellantis recently confirming the closure of its Luton van factory despite intense government pressure, which will lead to around 1,100 job losses.
Stellantis announced in November its intention to move manufacturing to Ellesmere Port, making it the brand’s “EV-only volume manufacturing base in the UK”.
A Stellantis spokesperson confirmed: “Production will cease in Luton in Q2 2025, with a period of transforming and transferring machinery and process knowledge to Ellesmere Port.”
The company plans to invest £50million to strengthen Ellesmere Port as its UK commercial vehicle hub.
BMW has also created uncertainty in the UK automotive sector by delaying electric vehicle production at its Oxford Mini plant.
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The manufacturer confirmed it is pausing work on a £600million upgrade of its Cowley facility, citing “multiple uncertainties facing the automotive industry” for the decision.
The company has declined a previously announced £60million Government grant but says it remains in “close dialogue” about future plans.
BMW stated: “Plant Oxford is at the heart of Mini production, manufacturing and exporting a range of models, which are sought after in the UK and around the world.”