Nissan in talks to build Renault models at Sunderland plant
Nissan in talks to build Renault models at Sunderland plant Global overhaul set to include closure of Barcelona plant and 20% cut in production capacity Nissan’s Sunderland plant has the capacity to make the Kadjar and Captur as they sit on the same manufacturing system as its Qashqai and Juke vehicles
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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 strategy outline from Mr Uchida on May 28 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. Recommended AnalysisRenault SARenault’s factory reopening brings a strange new normal 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 the discussions were ongoing, and the plan may change in the two weeks left before the announcement.
Elements of Nissan’s strategy 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 strategy 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.