Nissan denies job cuts at Washington

May 12 2008 By Andrew Mernin

CAR giant Nissan moved quickly last night to quash rumours of job cuts at its Washington plant amid reports that it could lose production of the popular Micra model.

Press reports yesterday said Nissan’s Wearside plant will lose the production of high-volume small car the Micra, when the replacement model is launched in 2010.

The reports said the loss was unlikely to result in severe job cuts at the Washington factory but would be followed by an announcement over the plant’s future next month.

However, the Japanese car manufacturer last night played down the speculation and re-affirmed its commitment to a long-term future in the North East.

A spokesperson for the company said there was no danger of any job cuts at the plant while plans to create 800 new jobs in the region on the back the success of the Qashqai model remain on track.

The spokesperson said: “This is pure speculation and nothing has been released by the company. The most important thing to stress here is that Nissan has the absolute intention to keep the factory operating at full capacity.

“There’s been a huge amount of investment into the Washington plant and this hasn’t been done for short-term reasons.

“The Washington plant is the busiest it’s been in its 20-year history – so if you put all these factors together you can see how safe the factory is and there is no danger of job losses.”

According to Nissan, the company is yet to make a decision on whether to continue making Micras in the North East once the new model is launched in 2010.

When the current Micra model was launched in 2003, Nissan chief executive Carlos Ghosn gained UK government support for Washington after threatening to transfer production elsewhere.
The Wearside plant fought off competition in France to begin Micra production despite speculation that Britain, being outside the euro-zone, would prompt the company to move work to the continent.

Last week Mr Ghosn praised the efficiency and cost-effectiveness of the Washington plant which employs around 4,200 people, although he also hinted at impending changes at the factory.

He said: “There will be changes at Washington. The plant is efficient and, with the pound declining, becoming more cost-competitive. The Micra is competing against cars made in low-cost countries. It is not profitable in Europe, but the Qashqai is.”

Meanwhile, the coming years could see Nissan’s Wearside operation moving away from petrol-driven cars amid soaring oil prices to focus on producing electric cars.

Tomorrow at Nissan’s headquarters in Tokyo, Mr Ghosn will present the next five-year plan for the car maker which is expected to reveal the firm’s future focus on electric vehicles.

PAGE TWO: Take a look back at the recent success of Nissan's Washington plant.