Japan Automatic Transmission Company Ltd (Jatco), a subsidiary of Japanese automaker Nissan Motor Company, has cancelled plans to produce powertrains for battery electric vehicles (BEVs) in the UK, according to reports citing a source close to the company. The electric powertrains integrate the drive motor, inverter and ​reducer into a single unit, reducing overall weight and production costs.

The news emerged after Nissan, which has a 75% stake in Jatco, announced major cutbacks to its global BEV programme earlier this year in response to weakening global demand, including in the US where the Trump administration withdrew BEV purchase tax incentives last September.

Nissan currently produces the Qashqai and Juke SUVs and the battery-powered Leaf sedan at its plant in Sunderland, UK. The automaker plans to add all-electric versions of the Qashqai and Juke SUV to the line-up, as well as the all-new Leaf, under its EV36Zero programme. Jatco, also known as a supplier of continuously variable transmissions (CVTs), has been developing electric powertrains in collaboration with Nissan since late 2022.

Jatco announced last year that it was investing GBP 49 million to build a new electric drive facility in Sunderland, supported by a grant from the UK Government, with operations scheduled to begin this year. The company is now understood to be planning to supply Nissan’s Sunderland plant with electric powertrains from Japan due to weakening demand for Nissan BEVs in Europe, as the company looks to optimise its global production capacity utilisation in view of Nissan’s reduced global BEV programme.