Nissan to axe 1,200 jobs at Sunderland plant

2:18pm Thursday 8th January 2009

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NISSAN has confirmed plans to make 1,200 people redundant at its Sunderland plant.

The figure includes 400 workers on temporary contracts and 800 members of staff.

The move will reduce the permanent workforce from 3,800 to 2,600.

In a statement issued in the last few minutes the company said: "Towards the end of 2008 the dramatic decline in customer demand affecting all car makers led Sunderland Plant to implement measures to adjust volume in line with the market. These included reductions in line speed, operating an existing volume flexibility arrangement with staff, and implementing non-production training days.

"The 2009 outlook for the car market remains extremely challenging, but Nissan is committed to taking the right action now to safeguard the plant's long term sustainability."

The company plans to:

* Remove one shift from both production lines until March;

* Reduce the plant headcount by 1,200 people.

Officials stressed that Nissan remained committed to the plant, which is Europe's most productive car factory.

It said a new model - a compact crossover similar to the Qashqai - will still be introduced next year.

Nissan Senior Vice President for Manufacturing, Europe, Trevor Mann, commented: "Like all manufacturers, Sunderland Plant is currently operating in extraordinary circumstances not of our making. It is essential we take the right action now to ensure we are in a strong and viable position once business conditions return to normal.

"Unavoidably, this means we have had to make some very tough decisions in recent weeks. However by doing so, we are helping to safeguard our long term future which I believe is extremely positive.

"We will begin preparations to launch another new model in 2010, which will be our sixth in seven years. 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.

"The long term future of the plant must remain our over-riding priority. However, as always, Nissan will continue to make every effort to minimise the impact on its employees and their families."

Nissan's dramatic move will ramp up press on business secretary Peter Mandelson to do something to help the car industry.

Bosses have been dismayed at his apparent unwillingness to provide concrete help beyond platitudes.

Jaguar-Land Rover is still awaiting a decision on a Government credit line despite requesting help in November.

Unions and car bosses have warned that up to 100,000 jobs in the UK car industry are at risk without Government help.

The annoucement will sent shockwaves through the North-East.

Nissan is widely seen as a bell weather for the region's manufacturing industry.