By JOHN-PAUL FORD ROJAS, DEPUTY BUSINESS EDITOR
Thousands of workers at Nissan's UK plant are facing uncertainty as the company scales back production – and may depend on a deal with a Chinese car maker to keep them in a job.
In the latest blow to British manufacturing under Labour, Nissan said it was combining two production lines into one at its Sunderland site.
Sunderland is Britain's biggest car factory, employing 6,000 people and making brands such as the Qashqai, Juke and Leaf. But it has been running below capacity. It will now seek a partner to pick up the slack.
That could mean a rival stepping in, with Chinese car maker Chery reportedly in talks with Nissan over such a move.
Nissan said there would be 'no operational job losses'. But the Mail understands that uncertainty will remain until a deal is agreed with a third party.
Professor David Bailey, motoring industry expert at Birmingham Business School, said: 'I hope they'll find a partner and that partner will use any spare capacity but there's no guarantee.'
The Nissan plant in Sunderland is Britain's biggest car factory
The announcement will raise fresh questions about Labour's failure to protect British industry from sky-high energy prices and a flood of Chinese imports.
Last year, senior Nissan executive Alan Johnson told MPs that the UK is 'not a competitive place to be building cars' and that the Sunderland factory 'pays more for its electricity than any other Nissan plant in the world'.
Tory business spokesman Andrew Griffith pointed the finger at Energy Secretary Ed Miliband over the latest setback for UK industry. Mr Miliband's net zero drive is widely blamed for driving up energy costs, crippling British manufacturing.
It comes after a major investment in Britain by artificial intelligence giant OpenAI was shelved last month partly thanks to high energy prices.
Mr Griffith said: 'Sky high energy costs and rising employment red tape is taking its toll on British industry with Nissan just the latest to announce job cuts or line closures.
'A government committed to manufacturing would listen and act but instead Ed Miliband is visibly calling the shots whilst the Chancellor and Business Secretary sit by silently.'
Nissan's consolidation was announced as part of wider cutbacks across Europe which will see 900 jobs go across France, Spain and the UK.
The company did not say how many of these cuts would affect its workforce in Britain.
Last year, Nissan said it was cutting 20,000 jobs globally as part of its 'Re:Nissan' recovery plan.
Yesterday, a spokesperson said: 'Under the Re:Nissan recovery plan, we have been taking decisive actions to enhance performance and create a leaner, more resilient business that adapts quickly to market changes.
'As part of this approach, today we have opened discussions with our European employees with a view to simplifying our structures, reducing complexity, and ensuring we operate in a sustainable and profitable way.
'This includes discussions on proposals for the partial closure of our Barcelona warehouse and to move to an importer model for our Nordic markets.
'We have also announced that we will consolidate production from two lines to one at our Sunderland plant as we assess future opportunities to secure full plant utilisation.'
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Car sales rebound in April as Jaecoo 'Temu Range Rover' loses crown as UK's favourite Chinese model
The Japanese firm, like the rest of the car industry has been grappling with falling demand and pressure from cheap Chinese brands.
In Britain the flood of Chinese cars has been exacerbated by the fact that the UK does not impose tariffs on them to protect domestic manufacturers – unlike the US and the European Union.
New car sales figures published yesterday illustrated the challenge facing Nissan, whose sales in the UK are down by 13 per cent for the year to date.
China's BYD is fast catching up while Chery and its sister brands Jaecoo and Omoda now sell more new cars combined than the more-established Nissan.
