Nissan ending some of its U.K. production
Nissan Motor Co. Ltd. will stop production of its upscale Infiniti models in the U.K. as part of a plan to withdraw the brand from Western Europe to focus on North America and China.
Production of the Q30 sedan and QX30 crossover models will cease by July at Nissan’s Sunderland plant in northeast England, the Japanese carmaker said Tuesday.
It’ll be the second blow within weeks for the U.K.’S biggest car plant after Nissan abandoned a plan to make the X-trail sport utility vehicle there, citing uncertainty over Brexit as a factor.
“In anticipation of its planned withdrawal from Western Europe in early 2020, the company is working to find alternative opportunities for any employees who would be affected,” Infiniti said in a statement.
Operations in Eastern Europe, Middle East and Asia won’t be affected. Infiniti has long been on the sidelines in Europe’s competitive car market selling few vehicles.
Sunderland produced about 12,000 of the two diesel models last year, out of nearly 450,000 cars. The brand will electrify its portfolio from 2021 onward and discontinue diesel offerings to focus on its SUV lineup in North America and unveil five new models in China.
Car companies are streamlining their portfolios and production sites among growing global pressures, including trade wars, the costly shift to electric cars and weakening markets.
The U.K. has been particularly hard-hit with Brexit adding another drag. Honda Motor Co. announced it’ll shut its plant in the U.K. while Jaguar Land Rover will cut about 4,500 jobs, most of them in Britain.
Nissan’s Sunderland plant employs more than 7,000 people, and 250 of them are focused on the Infiniti models, a spokesman said.
“The company will place more focus on its SUV lineup in North America, bring five new vehicles to China over the next five years, work to improve quality of sales and residual value and realize more synergies with Nissan Motor Company,” Infiniti said. Bloomberg