Nissan supplier to axe 160 more jobs

Dec 6 2008 by Chris Knox, The Journal

PRODUCTION cutbacks at Nissan could see 160 jobs at one of its North East suppliers axed, with hundreds more jobs also under threat at companies in the Washington car firm’s supply chain.

Newton Aycliffe-based ThyssenKrupp Tallent says it is being forced to make the cuts after seeing orders from its customers plummet due to the global financial crisis.

The firm, which has already cut 126 jobs from its 830-stong workforce in the last three months, is a major supplier of suspension and chassis parts to Nissan’s North East factory.

Yesterday, The Journal revealed that Nissan will halt production of its Qashqai model on Fridays in the run-up to Christmas – starting yesterday – following a 40% year-on-year drop in sales.

The firm, which is in talks with the Government in an effort to save jobs, directly employs almost 5,000 people in the region and supports around another 3,500 across its supply chains.

It is now believed that many of the car firm’s 200 other North East suppliers could find themselves in a similar situation as the automotive industry continues to suffer from a severe downturn in sales.

Davey Hall, regional secretary for union Unite, said: “This is bad news of the region’s automotive industry. This is only hypothetical, but if Nissan does start cutting jobs and production it could have a massive impact on a number of its suppliers here in the North East.”

ThyssenKrupp, which is Newton Aycliffe’s biggest employer, spent £1.5m in November last year on a dedicated Qashqai plant at Nissan’s Washington site.

A statement from the firm said: “It is with regret that Thyssenkrupp Tallent Limited has commenced consultations with the workforce on the potential redundancy of some 160 employees from its Newton Aycliffe plant. The continuing and unprecedented speed of reductions in demand brought about by the current economic climate forced the company to make further cuts in its workforce despite a steady growth in its 60-year history in Newton Aycliffe.

“Working with the recognised trade union and employee representatives, it is hoped that the impact of these potential job losses can be minimised to secure the long-term future of the plant.”

Ian Williams, director of business and industry at One North East, said: “Nissan plays a hugely important role in the regional economy as one of the region’s largest employers with a supply chain of hundreds of regional companies. With around 5,000 members of staff, the company helps support a further 3,500 jobs in its supply chain.

“One North East enjoys an excellent relationship with management at the Wearside plant and we will continue to work very closely with them during these tough economic times.

“Like all sectors during this unprecedented downturn, the automotive sector is feeling the impact of consumers reining in their spending.”

The announcement comes as statistics from The Society of Motor Manufacturers and Traders show that new car sales to private individuals slumped by 45% in November, compared with the same month last year – the steepest fall since June 1980.