North East automotive sector could see thousands of jobs created once current 'turbulence' is overcome

Building of new electric vehicle models and the batteries to power them has the potential to create up to 3,500 jobs in the North East, a key car manufacturing group has indicated.

The North East Automotive Alliance (NEAA) says the region's industry has a combined turnover of £10.3bn and employs about 27,000 people but could create significant growth once current turbulence in the sector has been navigated. A significant part of that activity is underpinned by Nissan's Sunderland operation, which earlier this week confirmed it was cutting back production at the plant amid global cost cutting.

Responding to the news, Paul Butler, who is CEO of the body which represents supply chain companies, said it was reflective of the significant flux in the global automotive sector but also demonstrative of the agility of the North East automotive sector in managing the challenging conditions. Mr Butler referenced well-publicised semiconductor shortages on the back of Covid, the emergence of new competitors such as BYD and Tesla and falling sales in traditional car markets in Western Europe and North and South America between 2019 and 2024, due to economic challenges, and concerns about range and charging technologies for electric vehicles.

The UK Government's Zero Emission Vehicle Mandate - which requires 100% of all new car sales to be EV by 2035 - has also prompted concern from manufacturers with Nissan itself among those