Scrappage boost for Nissan
THE success of the ‘cash for bangers’ scheme has helped to secure the jobs of 350 temporary workers at Nissan’s Sunderland factory until at least Christmas.
The Japanese car giant, which took on the extra staff to cope with demand for new cars fuelled by the scrappage scheme, says that Micra production has rocketed by 40% on the back of it.
Around 11,000 Micras were built in Sunderland last month and almost 10,500 were sold across Europe - up 4% on a year ago.
It makes the Micra Nissan’s second-besting selling model after the Qashqai, also made at the Sunderland plant, which saw sales jump by 15% year-on-year in September. The company said strong orders for the Qashqai are continuing to beat its expectations.
The welcome news for Wearside workers comes as industry body, the Society of Motor Manufacturers and Traders (SMMT), revealed that new car production is Britain is showing definite signs of recovery.
September’s figures showed that UK production was down to its slowest rate of decline since the credit crunch sent new car sales into freefall.
Under the scrappage scheme - launched in April and extended from an initial pot of £300m of Government money to £400m by Business Secretary Lord Mandelson - buyers get £2,000 off a new car when they trade in a banger that is at least 10 years old.
Nissan pushed the boundaries further with its own incentive, offering a minimum £2,000 off a new car for people trading in old motors aged between eight and 10 years.
Trevor Mann, Nissan’s senior vice president for manufacturing in Europe, said: “The scrappage incentives have brought sales that wouldn’t normally have been generated with Micra proving one of the most popular.
“Both the Government’s and Nissan’s own schemes have stimulated the market and allowed us to protect jobs at the plant and in the dealer network.”
But he warned that the company would remain cautious because the incentive was due to end soon.
“We will continue to monitor the market and adjust our production plan accordingly,” said Mr Mann.
Nissan said today that it could not say whether the 350 temporary workers who were re-employed to cope with the rush would keep their jobs in the New Year.
The company axed 1,200 staff at the Washington plant at the start of this year because of the slump in new car sales.
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