Nissan backs UK plant as it unveils restructuring plan
Nissan’s Sunderland factory will stay open as the Japanese carmaker unveils its global restructuring plan amid the coronavirus crisis.
However, the carmaker will close its plant in Barcelona, resulting in the loss of about 2,800 jobs, according to the Spanish government.
The closure could cost Nissan up to €1bn (£898m), the government said. It is part of a broader restructuring plan unveiled today.
Nissan aims to achieve a five per cent operating profit margin and a sustainable global market share of six per cent by the end of fiscal year 2023.
The coronavirus pandemic has adversely affected car sales. Nissan is part of an alliance with Renault and Mitsubishi, which yesterday announced details of a new strategy to deepen cooperation in a bid for survival.
Nissan was forced to pause its expansion plan after sales waned following chairman Carlos Ghosn’s arrest. He escaped from Japan, where he was awaiting trial on charges of under-reporting earnings, breach of trust and misappropriation of company funds, all of which he denies.
Chief executive Makoto Uchida said: ““Our transformation plan aims to ensure steady growth instead of excessive sales expansion. We will now concentrate on our core competencies and enhancing the quality of our business, while maintaining financial discipline and focusing on net revenue per unit to achieve profitability.”
Earlier this month, Bloomberg reported the Japanese carmaker was preparing to make cuts of $2.8bn (£2.3bn) as part of a three-year restructuring plan, which will be unveiled later today.
Additionally Nissan is considering cutting 20,000 jobs with a focus on Europe and emerging markets as car sales plunge. The cost cutting measures have been accelerated by the pandemic, as profits have struggled for the last three years.
Reuters has previously reported that Nissan’s management has become convinced it needs to be much smaller and will likely cut 1m cars from its annual sales target, while seeing a bigger role for the US and China in car sales.
Nissan was contacted for comment.