Future of UK Nissan factory uncertain amid global plant closures
Nissan is addressing the future of its Sunderland factory after confirming plans to slash 20,000 jobs worldwide and cease operations at nearly half of its production facilities.
The Japanese carmaker on Tuesday said it would consolidate its vehicle production plants from 17 to 10 by fiscal year 2027.
Nissan currently employs around 6,000 workers at its manufacturing facility in Sunderland.
Number 10 has urged the company to share its “full plan” so the impact on its UK operations can be assessed.
A spokesperson for Nissan’s UK manufacturing team said: “We are currently in detailed study within the company regarding the announced plant closures.
“At this stage, we are not able to inform you which plants will be affected.”
Nissan is battling huge losses amid problems with its production line-up and fierce competition in its traditionally lucrative Chinese market.
It is aiming to cut costs by around ¥250bn (£1.3bn) by full-year 2026, while achieving operating profitability and free cash flow.
Nissan focusing on profit
“In the face of challenging FY24 performance and rising variable costs, compounded by an uncertain environment, we must prioritise self-improvement with greater urgency and speed, aiming for profitability that relies less on volume,” Nissan’s president and chief executive Ivan Espinosa said.
“As new management, we are taking a prudent approach to reassess our targets and actively seek every possible opportunity to implement and ensure a robust recovery.
He added: “Nissan is an action-based recovery plan clearly outlines what we need to do now. All employees are committed to working together as a team to implement this plan, with the goal of returning to profitability by fiscal year 2026.”
The extension of its job cutting programme, which had initially proposed 9,000 layoffs in November, was first reported by the Japanese national broadcaster NHK on Monday.
Nissan’s UK arm reported a pre-tax loss of £67.2m for the 12 months to 31 March, according to the latest Companies House filings.
A Number 10 spokesman said: “We recognise this will be a concerning time for workers at Nissan and their families.
“Whilst this is a global decision taken for commercial reasons, we have a long-standing partnership with Nissan and will continue to work closely with them on their manufacturing future in the UK.