New Nissan model secures jobs

Jun 4 2008 by Peter McCusker, The Journal

THE boss of Nissan has spoken directly to staff at its Sunderland factory to assure them that a new model to be built at the plant from 2010 will compensate for the transfer of Micra production to India.

Nissan president and chief executive Carlos Ghosn concedes that it is now not possible for a car such as the Micra to be built profitably in Europe.

He said that from 2010, the Sunderland plant will be concentrating on producing higher value cars such as the Qashqai – of which more than 250,000 will be built at Sunderland this year.

But Nissan says the new model to be built at Sunderland, which is being supported by a £55m investment, will provide work for all the Micra production staff and may eventually boost the plant’s existing 4,700-strong workforce.

Speaking at Sunderland, Mr Goshn said: “It is not possible to produce a car like the Micra. We have been obliged to reposition the product and source it from a low-cost centre (India).

“However the switch is not a loss to Sunderland, it should be an enhancement. Estimating the sales volume for a new model is difficult. We were very conservative with the Qashqai. We thought it would be 130,000 but we are now looking at doubling that.”

The soaraway success of the Qashqai will see a third shift coming on stream at the plant later this month on its production line, which as reported in The Journal earlier, has created a further 800 jobs.

Nissan refused to release further details of the nature of the new model, saying only it would be pitched between the Micra and the Qashqai, would be “compact” and “fuel efficient”.

Ben Pulman editor of trade publication Car Magazine online said: “Nissan will know exactly what type of model they want to build, but will want to keep it under wraps for now.”

Since it came into production in 2002, more than 2.2m Micras have been manufactured at the Washington plant.

By 2010 Nissan will have built a production facility in the Indian city of Chennai, formerly known as Madras, and this will handle all Micra production.

Nissan say labour and raw material costs in Europe mean a car such as the Micra, which starts at a price of £7,500, can no longer be made profitably in Europe.

The decision to make the new model in Sunderland was announced during a visit by Prime Minister Gordon Brown to the firm’s European Design Centre in London, where he met Mr Ghosn.

Mr Brown said: “I’m delighted to congratulate Nissan on this new model, which will bring to Sunderland something that’s going to guarantee jobs in the distant future.

“Sunderland’s success shows what an innovative, talented and highly committed workforce can achieve, and reaffirms the UK’s position as a strong player in the global car industry.”

Nissan timeline

1984 Nissan and UK Government sign an agreement to build a car plant on a 799-acre site at Washington on the site of the former airfield.

1986 First Nissan Bluebird produced at Sunderland.

1990 Production of Nissan Primera began, Bluebird ends.

1992 Plant becomes two-car production facility with the start of Micra production.

1995 One millionth vehicle produced.

2000 Plant becomes three-model production facility with the start of new Almera production.

2002 Production of new Micra begins, with ramp-up of five weeks.

2005 Four millionth car is built at the Sunderland Plant, and is donated to the NSPCC. Micra C+C goes into production.

2006 Almera production ends. The sixth model to be built at the plant, the Qashqai, begins production.

2007 Exports started of Qashqai and C+C to Japan and Primera production ends.

Jan 2008 Sunderland Plant announces the creation of 800 jobs and the introduction of a third production shift to help meet demand for Qashqai

June 2008 Micra production to cease and a new model to be built

Production facts

:: Earlier this month Nissan built its five millionth car

:: The Sunderland plant has a workforce of 4,700

:: Over 80% of production is exported to 45 markets worldwide.

:: The Sunderland plant has been the UK's biggest car exporter for eight years.

:: During 2007, over 20% of the UK’s total car production was built by Nissan.

:: Sunderland was named most productive car plant in Europe for seven consecutive years until the report was discontinued in 2003.

:: Last year it built 354,000 cars

Getting smaller

HIGH petrol prices were blamed yesterday as General Motors announced it will close four truck and 4X4 factories in the United States and Mexico. About 10,000 workers will be affected by the closures. However, the GM board has approved production of a new small Chevrolet car at a plant in Ohio, in mid-2010 and the Chevy Volt electric vehicle in Detroit.