Nissan is in talks to shift production of two Renault models from Spain to its Sunderland plant, securing thousands of British manufacturing jobs and signalling the Japanese carmaker’s long-term commitment to the UK’s largest car factory. The Japanese and French groups are discussing moving production of the Renault Kadjar and Captur models as part of a global overhaul of operations to be announced this month, according to two people familiar with the talks. The future of Sunderland had been thrown into doubt following Britain's vote to leave the EU, with Nissan warning that tariffs with Europe would put the model of exporting from the UK “in jeopardy”. The Japanese carmaker is preparing to cut a fifth of its global production capacity and reshuffle its manufacturing operations to stem a profit drain that has been accelerated by the coronavirus crisis, according to three people familiar with the matter. Nissan and Renault declined to comment. The new strategy under Nissan chief executive Makoto Uchida aims to draw a line under a tumultuous period that involved the company being beset by boardroom infighting, the collapse of its profits and the deterioration of its relationship with alliance partner Renault. A sensible exchange of vehicle production with Renault, which is under discussion in Europe, would signal a healing in the partnership that was at one time the world’s largest carmaking alliance. Morale within the Japanese group remains low, however. On Thursday, Nissan told staff that its US president José Luis Valls had resigned from the company, according to an internal document seen by the Financial Times, becoming the latest in a string of high-level departures. A major plan outline from Mr Uchida on May 28th will detail several changes, including a restructuring of its struggling European business, according to people familiar with the discussions. Under the changes being discussed for the region, Nissan would close its Barcelona van plant, relocating production of its Navara pick-up truck to South Africa, while a replacement for the electric e-NV200 van would be made in France at Renault’s plant in Maubeuge. In return, Renault would cease production of two popular models in Spain and move them to the UK. Nissan’s Sunderland plant has the capacity and ability to make the Kadjar and Captur as they sit on the same manufacturing system as its Qashqai and Juke vehicles made at the UK site. People close to the talks cautioned that the discussions were ongoing, and the plan may change in the two weeks left before the announcement. Elements of Nissan’s plan were first reported by Nikkei earlier on Thursday. Nissan, which employed about 5,000 people in Spain, has already temporarily laid off about 3,000 people in the wake of the factory shutdown in Europe caused by the virus. It has also shut its Sunderland plant and does not plan to reopen the site until June. Renault will announce a plan update and cost-cutting plan at a similar time to Nissan, when it is expected to pare back some of its recognisable but older models, instead focusing on sport utility vehicles and electric cars. Nissan has invested more than £4bn in Sunderland, which has a capacity of half a million vehicles a year but produced 350,000 in 2019. The Japanese carmaker is determined to protect the site, and previously drew up plans to double down on the plant in the event of a no-deal Brexit, which would result in tariffs when exporting cars to Europe. https://www.ft.com/content/8e2aaf0a-3868-450b-8582-dbd09587277c
Would be fantastic this. That partnership with Renault has really saved Nissan’s bacon. Would make sense as well if the rumours that they want to scale back Nissan sales in Europe are true.
I’ve done the tour. Watched them make a Qashqai from scratch! Unbelievable watching it move through the line. they micro manage everything. If a member of staff can prove they can save 1/10 of a second they make those changes to the setup! Those little changes apparently make a massive difference! Amazing tour mind.
Its excellent news in the short term, but with Brexit looming and all the bad vibes, how long will a French Company for that is who own a larg part of Nissan be happy with the situation, I give the Washington Plant 10 years maybe 20 maximum. Gloat while you can,
On the other hand, many people and journalists were saying that Brexit would lead to the imminent closure of the Sunderland plant. They were wrong. I hope you are too mate. The very fact that they have chosen to close Barcelona, while adding to our portfolio, is a massive vote of confidence in our workforce and everything connected to the North East supply chain.