The future of Nissan’s Sunderland operations is in doubt as the Japanese car maker cuts its number of factories and shrinks its workforce even more than previously announced.
The company confirmed on Tuesday it will shut seven factories and cut 20,000 jobs globally in a bid to slash costs.
The job losses had been reported by Japanese media ahead of Nissan’s announcement.
The car maker said it will cut 11,000 more jobs than originally planned, having announced in November that it would axe 9,000 roles in a restructuring.
Its number of manufacturing plants will be slashed from 17 to 10.
Most job losses – 65% – will come from manufacturing, Nissan chief executive and president Ivan Espinosa told reporters.
Around 6,000 workers are employed at Nissan’s manufacturing operations in Sunderland.
A spokesperson for Nissan UK said it is “currently in detailed study within the company regarding the announced plant closures”.
“At this stage, we are not able to inform you which plants will be affected,” the spokesperson added.
Mr Espinosa has said, however, the company will assemble more electric vehicles at the Sunderland site.
He also confirmed some closures would come in Japan on top of previously announced consolidation in Argentina, Thailand and India.
“There is more to come, and we will inform you in due course,” he added.
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When asked why the announcement was being made now, he said Nissan “cannot absorb costs with current revenues”, and there is “volatility in the market”.
The auto industry is among the worst hit by US President Donald Trump’s tariffs, as cars and car parts entering the US have been subject to a 25% tax.
Cars made in the UK will be subject only to a 10% tariff as part of a deal negotiated between the US and UK.
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There is an “urgent need” for Nissan to recover, Mr Espinosa said.
“We have a mountain to climb from the losses we are announcing today,” he added.
Sunderland has been host to numerous politicians, including former prime ministers, over the years as Nissan announced in 2023 it was to build a battery-making gigafactory at the location.
In 2021, Boris Johnson’s government was understood to have committed around £100m directly to Nissan and Chinese manufacturer Envision to build the factory.
