Nissan announces 1,200 jobs to go at Sunderland plant

Jan 9 2009 by William Green, The Journal

CAR group Nissan last night sent shockwaves through the North East by axing 1,200 jobs at the country’s biggest and most productive car plant.

Almost one in four jobs will go at the firm’s factory at Washington on Wearside, which employs 5,000 people, as Nissan cut production amid a global sales slump and sparked fears for thousands more workers in the supply chain.

Shocked MPs and business leaders demanded urgent Government support for the industry and workers – as ministers promised to work with regional development chiefs to deal with the crisis and Nissan to ensure the plant’s future.

But Tory leader David Cameron warned of a devastating impact and urged ministers to adopt his national scheme to underwrite bank loans so businesses had vital access to credit.

“Every day the Government delays such a scheme, more jobs are lost,” said Mr Cameron, who will meet Nissan bosses when he visits the region today.

Houghton and Washington East Labour MP Fraser Kemp said: “The company and workforce are having to face the consequences of a massive global downturn and its effects on the car market.”

The situation was a matter of deep concern to everyone affected. He called for support for the industry to ease access to credit and revealed he had spoken with Business Secretary Lord Mandelson over Christmas.

Lord Mandelson raised some hopes as he promised help for staff and said the Government would work with Nissan to secure investment. “As part of that aim I want to visit the plant as soon as possible to start work with Nissan on plans to bring manufacture of Nissan’s new family of electric vehicles to Sunderland.”

The plant’s highly skilled workforce would be needed as the global economy improved. Nissan boss Trevor Mann stressed the company remained committed to the North East, with a new model launch next year.

“This level of new model introduction is unparalleled in plants across Europe and demonstrates the confidence Nissan’s top management has in the Sunderland workforce.”

He said Nissan was acting to safeguard the plant’s long-term future and would minimise the impact on staff and their families, expressing hope that job cuts could be achieved voluntarily. Nissan sold 66,336 cars in the UK in 2008 – only 0.14% fewer than in 2007 – a much better performance than the national average, which saw new car sales slump 11.3%.

But sales for last December fell 26.68% compared with the same month in 2007, amid a national decline of 21.2%.

And workers returned to the production line only on Monday after an extended Christmas shutdown because of the sales slowdown.

Regional CBI director Sarah Green said Nissan had been hit by a global slowdown rather than any issue at its local plant and urged the region to help workers find alternative opportunities.

“The CBI will continue to press Government on how it will free up credit to enable consumers and traders to have the ability and confidence to resume purchasing cars,” she said.

The Society of Motor Manufacturers and Traders said the “desperately sad” news confirmed industry fears and it urged ministers to help.

Joint general secretary of the Unite union Derek Simpson warned against losing workers’ skills and is pressing for a £13bn support package for manufacturing, similar to aid given by governments in Germany, France and Sweden.