NISSAN WILL INVEST $1.4 BILLION TO MAKE EV VERSIONS OF ITS BEST-SELLING CARS AT ITS UK FACTORY

Nissan will invest $1.4 billion to update its factory in northeast England to make electric versions of its two best-selling cars, a boost for the British government as it tries to revive the country’s ailing economy.

The Japanese automaker manufactures the gasoline or gas-hybrid Qashqai and smaller Juke crossover vehicles at the factory in Sunderland, which employs 6,000 workers.

Nissan Motor Co. said it’s directly investing up to 1.12 billion pounds ($1.4 billion) to produce electric successors to the two models. The money also will enable “wider investment in infrastructure projects and the supply chain, including a new gigafactory” for EV batteries at the site, the government said in a separate press release.

“Nissan’s investment is a massive vote of confidence in the U.K.’s automotive industry,” which contributes 71 billion pounds a year to the economy, Prime Minister Rishi Sunak said.

Sunak visited the factory for the announcement, posing for photos with Treasury chief Jeremy Hunt in front of a blue Qashqai on the assembly line, meeting workers and getting a tour from plant staff. The day before, Hunt announced tax cuts and other budget priorities ahead of a national election next year, coming as economic growth is weak in the U.K. and still-high inflation is squeezing consumers.