Nissan's Sunderland factory appears to be so far unscathed in a massive global restructuring of the manufacturer which will include closures and other cuts.
Initial details of the turnaround plans, issued in the wake of confirmation that merger talks with Honda have been show the Japanese car maker is looking to cut 6,500 jobs globally, some of which will come from the closure of its Thailand factory and two other - as yet unnamed - plants by the end of 2026. Jobs will also be slashed by reducing shifts, initially in the US, as part of a move to reduce global production by 20%.
Bosses have said they will carry out a review of the company's market presence and make decisions about where to remain.
Nissan is looking to make equivalent to £2.08bn cost savings as it grapples with severe financial challenges in the wake of plummeting profits. The turmoil at the manufacturer appeared to continue with new third quarter results showing operating profits dropped by equivalent to £2.1bn, and executives downgraded this year's outlook financial outlook.
While questions still remain around the future of the Wearside plant, which employs 6,000 people, there are factors that appear to be in its favour. The location is at the centre of Nissan's switch to electric vehicle production and has received about £2bn investment through the EV36zero plans, which have brought new battery-making capacity to the site, along with renewables to power production and changes to the factory to accommodate three all-electric models.
In recent weeks Nissan's majority-owned transmission supplier has also announced it plans to create 180 jobs at the nearby International Advanced Manufacturing Park through a near £49m investment into setting up a new factory to deliver electric powertrains. Jatco was supported with £12m of Government grant funding.
Speaking to BusinessLive at Jatco's North East launch last month, North East Mayor Kim McGuinness said: "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 , 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 Ƶ and Europe - and we need to be supporting this sector and supporting Nissan."
This week Sunderland City Council leader Michael Mordey said Nissan had a “strong track record of investing in the city” and that it was important to keep working with the manufacturer to make sure it can remain competitive, for the benefit of the Sunderland and North East economy.
Announcing the restructuring plans, 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."
