Nissan is upbeat about its plans for North site
Jan 11 2010 by William Green, The Journal
THE head of Nissan UK has warned the end of the Government's car scrappage scheme could see a "step change down" for the company.
Nissan UK managing director Paul Wilcox expressed hope that ministers will extend the scheme, which has boosted car sales, but said the car maker was not banking on the move.
And he sounded an upbeat note about a new “baby brother” to the Qashqai model being built at its Sunderland plant from November.
The factory is still in the running to build the next generation of electric vehicles – although no decision has yet been taken.
Mr Wilcox said 2009 had been a dramatic “roller-coaster” year for the company and its workforce with the market down 30% from the peak in 2007.
“But we have seen obviously the big positive impact of the Government action on scrappage incentive,” he said. Looking forward to 2010, the Nissan boss added: “The scrappage scheme ends in the middle of February.
“We are hopeful that there will be an extension but we are not banking on that. So that will obviously mean the first quarter of 2010, the market will still be held up by the scrappage scheme, but beyond that we will see a step change down.”
Mr Wilcox also warned about the impact of VAT, which has returned to 17.5%, a new car registration tax and public uncertainty in the run-up to the looming general election.
“I think the big issue we face today is consumer confidence. Any uncertainty can hold back consumer confidence,” he said.
But Mr Wilcox painted a more upbeat picture for workers at the Sunderland plant, with production being ramped up from the end of the summer in anticipation of the baby brother to the Qashqai being produced from November.
The move would allow Nissan to maintain its investment “footprint” at the plant, said Mr Wilcox.
He confirmed that electric battery production would begin at the site in about 18 months, although the decision to build electric vehicles had not yet been made.
“Sunderland could be a potential plant to build electric vehicles and if that comes to fruition, I think that would be fantastic news obviously for us in the UK and the obviously the UK economy,” said Mr Wilcox.
He added Nissan’s electric vehicle would not be a “toy car” but a five-seater family hatchback, with the plan to bring it to the UK towards the end of next year.
Electric vehicles would take 10% of the market within a decade and a “big proportion” over the next 30 years, said Mr Wilcox.
