Automotive giant Nissan has re-affirmed its commitment to its Sunderland plant despite announcing huge losses.
The CEO and president of the Japanese car firm said core production would continue at the plant, which employs more than 6,000 people, though it will close a plant at Barcelona with around 3,000 job losses.
The announcements came as Nissan revealed huge losses in its 2019 financial year – and predicted a further decline. Last year the firm saw global volumes slide 6.9%, with Europe hit hardest within its worldwide markets with a fall of 19.1%.
Net revenue fell from 11,574.2 billion yen to 9,878.9 billion yen – a drop of 14.6% - and last year’s operating profit of 318.2 billion yen sank to a loss of 40.5 billion yen. Ordinary profit plummeted 91.9% from 546.5 billion yen to 44 billion yen.
The plans form part of its ‘Nissan Next’ transformation plan for 2020 to 2023, which will see it focus on key vehicles, such as electric and sports models, in its key markets, introducing new technologies into its future vehicles to meet demands from customers.
Mr Uchida highlighted how Nissan had suffered as a result of the Coronovirus pandemic which had compounded the stagnation of global markets. He said that, looking ahead, the firm had to “learn from its mistakes”.
He Uchida said: “We will maintain core manufacturing in Sunderland and also improve efficiences. We considered various measures in Barcelona and although it was a very difficult decision we intend to close the plant.”
Nissan and Renault have been in an alliance since 1999 but that partnership has been strained since the arrest - and subsequent escape - of former chairman Carlos Ghosn. Mistibushi joined the alliance in 2016.
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Reports have suggesting that the Sunderland plant could benefit from the closure of the Barcelona plant, envisaged the North East taking on production of Renault’s Kadjar and Captur models, which are similar to Nissan models produced on Wearside. The reports were described as “speculative” by Nissan at the time.
The Sunderland plant has received huge levels of investment in recent years but has spare capacity after the cancellation of two models in 2019.
Under a four-year plan, Nissan will cut production capacity and its model range by about a fifth to help cut costs.
Unite union national officer Steve Bush said: “Unite continues to push for sector level assistance from Government to support the transition of our world-class automotive industry in these unprecedented times. But that does not mean we will stand by as companies discuss detrimental measures in reaction to immediate and short-term challenges.
“We are seeking clear assurances from Nissan that the cost-cutting measures spoken about will not impact on our members’ jobs, terms and conditions or other benefits at Europe’s most efficient plant, Sunderland.
“We have made it clear to Nissan that any attempt to do this will be fought by the union and a loyal, world-class workforce.”
Sharon Hodgson, the Labour MP for Washington and Sunderland West, said the news will come as a relief to her constituents.
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But she added: “Efficiency savings are still due to be made, and I want to add my voice to calls by Unite that they should not come in the form of job cuts or changes to terms and conditions for workers.
“The closure of the plant in Barcelona should act as a warning to the 海角视频 Government that there is no room for complacency when it comes to supporting manufacturing in the 海角视频, particularly as we emerge from the current crisis.”