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Business News of Thursday, 28 May 2020

Source: BBC

Nissan backs UK plant but protests erupt in Spain

Nissan car Nissan car

Nissan's UK factory in Sunderland will stay open as the Japanese carmaker carries out a global restructuring amid the coronavirus pandemic.

The carmaker also announced it will close its factory in Barcelona with the loss of about 2,800 jobs, prompting protests at the Spanish plant.

Hundreds of workers gathered as burning tyres blockaded the site which Nissan said would close from December.

Nissan is cutting production amid falling sales and rising losses.

On Thursday, the carmaker revealed a $6.2bn (£5bn) net loss in the last financial year - the worst result for more than a decade.

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Nissan is part of a three-way alliance with Renault and Mitsubishi, which are restructuring global operations to enable them to work more closely and cut costs.

As part of its plans, Nissan said it would focus on several "key markets", including Japan, North America and China.

Its boss said that it will "sustain" its presence in Europe but will leave more room for alliance partners there, such as Renault.


The Sunderland plant employs about 7,000 people
There has been speculation that Renault could switch some production to the Sunderland factory.

Nissan chief executive Makoto Uchida said the company would maintain production at its Sunderland plant.

It will begin building cars there again in June, after production was paused due to coronavirus-related lockdown measures.

Before the suspension, the factory was preparing for production of the next-generation Qashqai, due out next year. The factory, the UK's biggest car plant, employs about 7,000 people.

'Difficult decision'
Mr Uchida described the closure of the Barcelona factory as "a very difficult decision".

The factory and its nearby facilities employ about 3,000 workers, but the closures could indirectly affect as many as 22,000 jobs, unions have said.

"The loss of the jobs of our Spanish colleagues is a regrettable reminder that automotive manufacturing is facing tremendous challenges," said Steve Bush, national officer for automotive at the Unite union.


Protestors burned tyres in front of Nissan's plant in Barcelona which is being closed down
Some staff in the Barcelona plant started an indefinite strike in early May after initial plans outlined a 20% cut to the workforce.

Mr Bush added that Unite is seeking assurances from Nissan "that the cost-cutting measures spoken about will not impact on our members' jobs, terms and conditions or other benefits at Europe's most efficient plant, Sunderland."