by Michael Gauthier
- Nissan continues its cost cutting mission, this time in Europe.
- Reports suggest that around 900 people could soon be out of a job.
- The company is also cutting one production line in the UK.
Nissan is trying to get back on solid financial footing and this has seen the automaker make a series of steep cuts. Factory closures have been a part of this as the automaker tries to reduce excess capacity.
The cuts are now spreading to Europe as the Financial Times is reporting the automaker will slash its workforce on the continent by approximately 10%. This means roughly 900 employees could find themselves without a job.
More: Nissan Shutting Down Another Plant, Ending Infiniti SUV Production
Details are hazy, but the publication said a parts warehouse in Barcelona will be downsized, while the automaker will also “restructure its distribution operations in Nordic markets.” White collar jobs are also believed to be on the chopping block in the United Kingdom.
Sticking in the UK, the company’s Sunderland plant will reportedly be reduced to one line. This isn’t terribly surprising as the facility is said to be running at 50% capacity, so it doesn’t make much sense to have two lines running.
The future of the second line remains up in the air, but previous reports have indicated Nissan is talking to Chinese automakers – including Chery – about using part of the plant. The company acknowledged this possibility as they told the publication they’re exploring “opportunities with third parties to maximize plant utilization.”
The Japanese firm went on to say the overall efforts are “essential to protect Nissan’s future in Europe, safeguard jobs in the long term, and ensure we can profitably compete in Europe.”
Through the first four months of the year, Nissan has only managed to sell 28,389 vehicles in the United Kingdom. That’s down 13.3% from last year and the automaker is barely beating Chinese rivals BYD (26,396) and Jaecoo (22,789).