Nissan lays off hundreds as sales slide
Car giant shifts production at Sunderland away from diesel as volumes in Britain slump 35pc in first quarter
NISSAN is to lay off hundreds of workers from its car plant in Sunderland, as it shifts production away from diesel vehicles amid a sharp fall in sales. The plant employs 7,000 workers and is the UK’S biggest car maker, producing 500,000 vehicles a year, including the Juke, Qashqai and electric Leaf models, of which roughly a quarter are diesel. The Daily Telegraph understands that less than 10pc of the workers at the site will be affected, with sources saying the figure was a lot lower than 700. However, Nissan declined to give an exact figure.
The company said it was in discussions with employees and that any job losses would be among its permanent workforce and would be voluntary. It is understood to be speaking mainly to its longer-serving members of staff. Nissan expects output to fall this year, but to increase in 2019. This means it needs to cut costs in the short term as it weathers a downturn in demand.
Car sales across the UK and Europe have fallen in recent months. The Japanese group saw sales in Britain slump 35pc in the first quarter of this year to 34,794, according to data from the Society of Motor Manufacturers and Traders. Across Europe, Nissan’s sales tumbled 10pc in the first quarter, and 16.3pc in March alone.
Sales of diesel cars specifically have been falling in Britain amid Government tax rises and proposals to ban them altogether in the future. Last year, around 42pc of new car registrations in the UK were for diesel vehicles, down from 47.7pc in 2016 and, in the latest set of figures from the car industry, for March, diesel’s market share was at 37.2pc.
Nissan’s Sunderland plant is thought to be moving away from producing diesels towards newer, more efficient and environmentally friendly models. It will be building its new Qashqai and X-trail models at the factory.
The announcement comes just a week after Jaguar Land Rover said it would be cutting production and laying off 1,000 temporary workers at its Solihull plant, amid a downturn in the wider car market. New car sales in Britain have fallen 5.1pc so far this year.
The move, however, is likely to reignite questions over the Government’s rumoured “sweetheart deal” with the Japanese car maker. The Government, in the wake of the Brexit vote, was accused of offering assurances to Nissan in order to safeguard jobs at the Sunderland plant.
Number 10 at the time denied that it had offered special help to Nissan, but it was understood to be providing additional support across the industry to support the supply chain and encourage investment in greener vehicles. A spokesman for the Department for Business, Energy and Industrial Strategy said: “We are working with the industry to ensure that the UK is at the forefront of new automotive technologies and remains the destination of choice for future investment.”
A Nissan spokesman said: “We are transitioning to a new range of powertrains over the next year. As we make the changes required, we will be managing a planned short-term reduction in powertrain supply and plant volumes. We are now discussing these operational changes with our employees.”