Nissan factory workers sent home till Monday

Dec 10 2008 by Sam Wood, Graeme King & Andrew Mernin, The Journal

From good news to start of a crisis

IT TOOK just four months for good news at Nissan to turn into the beginnings of a crisis.

As recently as June, the Japanese car giant revealed the soaraway success of its Qashqai model meant a third shift was needed at the Washington plant.

And the good news came on the back of an announcement in February that 800 new jobs would be created – with a further 400 following in the production chain.

But as the collapse of the American housing market started a knock-on chain of events that rapidly turned into a global economic slowdown, car sales started to drop.

Nissan’s first move came in October, when it announced production on its Note and Micra models in Washington would be frozen for two weeks, before moving on to a four-day shift pattern.

Then The Journal revealed on Friday the company’s flagship Qashqai model was also to be cut to a four-day week.

But with the prospect of Government aid in the pipeline and Washington’s position cemented as Europe’s most productive car plant, yesterday’s announcement came as a shock.

It is also feared it could have a knock-on effect in the supply chain.

The slowdown has already led to 160 jobs being axed at Newton Aycliffe-based ThyssenKrupp Tallent, again revealed in The Journal.

Then in yesterday’s Journal we revealed 400 temporary Nissan workers could be laid off in the New Year

Car companies across the country have also been badly hit by the collapse in sales, with workers in Oxford and Swindon already sent home for an extended Christmas break and others in Merseyside enduring cutbacks.

Nissan’s 40% slump in sales is actually better than the national average, where figures have decline by half.

In the US, the situation is dire and a sweeping bail-out plan is being considered by the White House involving the government owning equity stakes in the struggling companies.

GM and Chrysler are in such huge financial trouble that they could go bankrupt before Christmas without a cash injection.

It is thought long-term restructuring of the industry will require an investment of at least $34bn.

Statement

THE full statement released by Nissan last night said: "Nissan continues to review its sales and inventory levels throughout the current economic crisis and as such, production at the Sunderland Plant will be refocused towards priority markets.

"For the remainder of the calendar year Sunderland Plant will match its production to customers in order to manage inventory and as such it is likely that we will have a number of non-production days between now and December 23, its planned winter shutdown day.

"The expected number of down days will be around six and during this time a combination of training, home leave and improvement activities will take place. It is expected that staff will be on full pay and return to work as normal in early January.

"The economic crisis continues to significantly affect all car makers globally, and it is essential Sunderland continues taking the right action now to protect the future of the company by matching volume to softening customer demand. Business conditions remain highly volatile and Sunderland will continue to take any appropriate action if and when needed."

Timeline

FOLLOWING almost a quarter century of non-stop growth the last few months have seen the brakes applied to Europe’s most productive car factory. Over the years workers at Washington have manufactured six models from the Bluebird in 1986 to the Qashqai in 2006.

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

:: 1986 First Nissan Bluebird produced.

:: 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 Almera production.

:: 2002 Production of new Micra begins.

:: 2005 Four millionth car is built and donated to the NSPCC.

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

:: 2007 Primera production ends.

:: Jan 2008 Plant announces 800 new jobs and the introduction of a third production shift.

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

:: June 2008 24-hour Qashqai production line goes live with 800 new staff on third shift.

:: August 2008 Production begins on seven-seater Qashqai.