A STRUGGLING car brand has confirmed it will be axing hundreds of jobs at one of its UK factories.
The move comes after the firm reported £4 billion losses in the last financial year.
Around 250 jobs are to be axed from the brand’s Sunderland factory[/caption]
Nissan reported £4 billion losses last year[/caption]
Nissan has now confirmed the axing of around 250 jobs from its Sunderland factory.
The jobs will be cut under a “voluntary leave scheme” letting employees choose to leave their roles with support from the company.
It comes just weeks after the Japanese firm announced the new Nissan Leaf would be made at the Sunderland site.
The job losses will hit non-manufacturing positions with around 250 staff to be made redundant.
Nissan has announced the cuts amid a desperate bid to balance the books and support a global effort to become a more “resilient business.”
The attempts to save the brand were ramped up after merger talks with Honda fell through.
Earlier this year the firm announced 20,000 job losses, seven factory closures and a pause on all post-2026 new car development.
The closures of seven of its factories would see the brand limited to just 10 sites.
The Japanese brand has been undergoing significant restructuring since the appointment of new CEO Ivan Espinosa in April.
New boss Espinosa hopes to put an end to the company’s decline and has begun implementing massive cuts in an effort to turn things around.
These plans reportedly include cutting 25% of Nissan’s global workforce.
Earlier this year, he made way for a £2.6 billion decrease in the value of production and forked out £316 million in restructuring costs.
Despite the sweeping cuts there is no guarantee the firm will return to profitability this year.
So far it has estimated a first-quarter loss of $1.36 billion.
Sweeping cuts are being made in an effort to save the floundering car maker[/caption]
The job losses will hit non-manufacturing positions[/caption]
Nissan also told MPs earlier this year that it is due to end the year with debts of £10 billion.
The brand is reportedly considering several drastic measures in a bid to save its profitability with CEO Ivan Espinosa saying “everything is on the table.”
A Nissan spokesperson told The Sun: “Our Sunderland Plant remains at the forefront of our electrification strategy, with the new LEAF coming later this year, a new EV Juke arriving next year and our new e-POWER system coming to Qashqai soon.
“In order to support future competitiveness, this week we are beginning discussions with some of our team in Sunderland about the opportunity to voluntarily leave Nissan, with support from the company.
“This will support the plant’s efficiency as we aim to become a leaner, more resilient business.”
Why are so many car dealerships closing down?
By Summer Raemason
According to Business Rescue Expert there are multiple reasons why car dealerships are folding across the UK.
The first major factor is rising online car sales which are beating in-person sales at dealerships.
With an extensive range of comparison and second-hand sites to chose from, may car buyers don’t even step foot into a dealership anymore.
Secondly, the actual cost to physically run the sites has soared.
Rent, wages and energy bills have all been increasing for roughly the past five years, putting many out of pocket.
Car manufacturing across the globe was also hit by a semiconductor chip shortage in 2022 which made it difficult to produce new motors.
The high demand with limited supply created a backlog, which although has eased, is still having an impact on the industry.
A third reason for recent closures is the shift to electric cars.
They are becoming more popular, given the Government initiative to be Net Zero in 2050.
The industry is also affected when companies merge or are bought by rivals.
This may lead to some independent names falling victim to the ongoing spate of closures.
