Nissan shuts one Sunderland production line but Qashqai, Juke and Leaf output to be unaffected
Nissan is merging its two Sunderland production lines, potentially paving the way for Chery to make use of spare capacity
Nissan has announced that it’s merging two production lines at its Sunderland plant that currently produce the best-selling Nissan Qashqai and Juke SUVs, as well as the new electric Leaf.
The firm is seeking to further streamline costs, and will also cut up to 10 per cent of its European workforce while potentially seeking to strike a deal with Chery that could see the Chinese conglomerate utilising spare production capacity in Sunderland.
On Tuesday, a Nissan spokesperson said that under its ongoing RE:Nissan recovery plan, the firm has “been taking decisive actions to enhance performance and create a leaner, more resilient business that adapts quickly to market changes.”
Nissan says it “will consolidate production from two lines to one at [its] Sunderland plant as [it] assess[es] future opportunities to secure full plant utilisation”.Until now, Nissan’s Sunderland plant has been operating at roughly half its capacity of more than half a million annual units; last year, for example, Sunderland produced ‘just’ 273,174 cars. As a result, the merger of the two lines won’t result in any manufacturing workforce losses, nor should it, in theory, affect production output.
That’s not to say that all jobs at Nissan are safe as the Japanese firm admits that it has also “opened discussions with our European employees with a view to simplifying our structures, reducing complexity, and ensuring we operate in a sustainable and profitable way”. This relates to Nissan’s plan to cut roughly 10 per cent of its 9,500-strong European workforce. Any British-based jobs cuts will probably be behind the scenes from office-based roles rather than manufacturing jobs.
Nissan has refused to comment on what it will do with the space created by closing a production line. Reports by the Financial Times, however, suggest the firm is currently undergoing talks with Chinese automotive giant, Chery, for it to utilise the remainder of the Sunderland production space. Chery, which produced the best-selling car in the UK in March, the Jaecoo 7, is also reportedly speaking with Jaguar Land Rover with a view to utilising its spare UK manufacturing capacity.
Nevertheless, any deal struck should help provide a leg up to Nissan which is currently on track to record a projected two-and-a-half billion pound loss for 2025. The firm is currently pinning its hopes for recovery on the aforementioned Nissan Leaf and the recently announced all-electric Nissan Juke – both of which are set to be produced in Sunderland – as well as the continued success of the Qashqai crossover.
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