Fears for 7,000 Nissan UK jobs as France bids to tighten grip on firm
THE future for jobs at Nissan’s car plant in Sunderland has been thrown into doubt after a power grab by the French government.
President Francois Hollande is trying to tighten the state’s grip on Renault, which owns more than 40 per cent of Nissan.
This could threaten a long- standing alliance between the French car giant and Japanese firm Nissan, which employs 6,700 people in Sunderland. Concerns have mounted that the French government’s increased control of Renault could see it attempt to switch jobs and investment in Nissan from the UK to France.
Nissan was rescued from collapse by Renault in 1999 but has since outgrown its French parent with global success in car making and engineering.
While Renault efficiency and production in France has been marred by strikes and union demands, Nissan’s Sunderland plant is Britain’s biggest car factory and is also one of the firm’s most productive. The dispute began in April when French economy minister Emmanuel Macron raised the government’s stake in Renault from 15 per cent to 19.7 per cent to increase its control over the company.
This sparked a backlash from Nissan which is thought to have set out plans to curtail Renault’s influence and block any interference from France.
The Japanese firm is also said to be threatening to axe its agreements with Renault unless the French government backs down.
Nissan and French officials have been negotiating for two months to resolve the dispute. Nissan has been pushing for written guarantees from the French.
The standoff between Mr Macron and Carlos Ghosn, chief executive of both Nissan and Renault, will come to a head next week when the Renault board is due to decide on a response to the French government’s power grab.
Unions representing Nissan staff branded the move by the French as ‘unacceptable’.
A spokesman for Nissan said: ‘Nissan is working hard to ensure that the issues with the French state remain (related to) shareholding only and do not impact on operations. We remain committed to a successful alliance and finding an amicable solution to the issues as soon as possible.’
Nissan has dismissed concerns about British jobs. Senior vicepresident Colin Lawther told the Shields Gazette newspaper: ‘The issue you are talking about is one between Renault and the French government and really, we don’t want to comment on that. It is a political situation, it has no impact on our manufacturing operations. Jobs in this plant are not under threat – we have got 6,700 people, we have recruited another 300.’
But any question mark over jobs in Sunderland will be particularly sensitive. The North- East has already suffered from the loss of hundreds of jobs after the collapse of SSI’s Redcar steel plant in October. There are also fears over jobs at Jaguar Land Rover in the Mid- lands. Its workers have written to Cyrus Mistry, chairman of the company’s Indian parent Tata Group, to seek assurances.
Tata bought Midlands- based Jaguar Land Rover in 2008. The conglomerate has recently been closing plants and laying off people in its steel business as prices fall and demand weakens.