Nissan will shut down part of its plant on Wearside in a move which will affect 250 jobs.
From early 2024, cylinder heads will no longer be manufactured at the Sunderland site after a contract with French firm Renault was not renewed.
The Japanese car giant has reassured workers that staff would be redeployed elsewhere.
On Tuesday 23 August, a Nissan spokesperson said: “We do not expect this to result in job losses, and are working with staff as we redeploy them to other parts of the business.”
Cylinder heads are made from either cast iron or cast aluminium and works as the 'control centre' of the engine.
It is the meeting point for the intake, exhaust, ignition and fuel systems.
These parts have been produced by Nissan at the Sunderland plant for 30 years.
Sharon Hodgson, MP for Washington and Sunderland West, said she had met with Nissan to discuss their announcement and was planning on speaking to union representatives.
She added: "It is concerning that Nissan will be losing this operation, especially for the 250 workers, but Nissan have assured me that there will be no job losses as all staff will be redeployed within Nissan.
"I will also meet with Unite officials as soon as can be arranged."
Earlier this year, it was announced Nissan would join Renault and Mitsubishi Motors to invest billions of pounds in electric vehicles over the next few years.
The alliance of car giants said they will jointly launch 35 new electric vehicles over the next five years based on five common platforms, including a successor to the Nissan Micra.
They also signalled a huge increase in global battery production.
Nissan opened its Sunderland factory in 1986 and it employs approximately 6,000 people.
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