Nissan's Sunderland factory seems to have been spared in a significant global restructuring of the manufacturer, which will involve closures and other cuts.
The initial details of the turnaround plans, released following the confirmation that merger discussions with Honda have been abandoned, reveal that the Japanese car maker intends to cut 6,500 jobs worldwide.
Some of these cuts will result from the closure of its Thailand factory and two other unnamed plants by the end of 2026. Job reductions will also occur through shift reductions, initially in the US, as part of an effort to decrease global production by 20%.
READ MORE: {}
Company executives have stated they will conduct a review of the company's market presence and make decisions about where to remain. Nissan aims to achieve cost savings equivalent to £2.08bn as it contends with severe financial challenges following a drop in profits.
The upheaval at the manufacturer seems to continue, with new third quarter results indicating operating profits fell by an equivalent of £2.1bn, and executives downgraded this year's financial outlook.
Whilst the future is uncertain for Nissan's Wearside plant, which employs about 6,000 people, there are positive indicators. It is seen as central to Nissan's transition to electric vehicle production, has benefited from about £2bn in investment through the EV36zero initiative, reports .
This investment has added new battery production capabilities to the plant and introduced renewable energy sources to power operations, whilst accommodating the manufacturing of three all-electric models.
In recent developments, Jatco, a transmission supplier with a majority stake held by Nissan, has unveiled plans to establish 180 jobs at the International Advanced Manufacturing Park located nearby. This move comes alongside a nearly £49m investment aimed at constructing a new factory dedicated to producing electric powertrains.
Most Read
The Government has supported this venture with a contribution of £12m in grant funding.
North East Mayor Kim McGuinness, speaking to BusinessLive during last month's North East launch event for Jatco, commented on the automotive giant's role in the region: "Of course Nissan is really important to our region, as is the whole automotive sector. It's a lot of jobs for us - and there are good jobs that people aspire to do, so any news that looks like uncertainty for that is of course really scary for our region and it feels negative.
"But, what we're seeing here is a new global partner coming into [Nissan's] global supply chain and providing more technology. And we're seeing Nissan talk about their future and their transition to all-electric vehicles. That feels very much like a vote of confidence in our region, in the people that work here in Sunderland, in the productivity from this plant. And for me - it's crucial for our future. We're known for making things in this region, and we're known now for making cars - we make more than nearly anywhere else in the 海角视频 and Europe - and we need to be supporting this sector and supporting Nissan."
Council leader Michael Mordey remarked on the significant support that Nissan's investments represent for the Sunderland and broader North East economy.
Nissan president and CEO Makoto Uchida said: "Nissan is fully committed to its turnaround actions, aiming to reduce costs by around 400 billion yen. We are dedicated to achieving a more efficient cost structure while driving top-line growth through enhanced competitive products that cater to the diverse needs of our customers. We are executing our turnaround-centred on efficiency and growth-with pace and purpose."