Nissan Micra production in Sunderland increases by 40%

Oct 28 2009 by Karen Dent, The Journal

PRODUCTION of Micras at Nissan's Sunderland factory has surged by 40% due to the scrappage scheme but it is feared levels will dip again once the Government's 'cash for bangers' pot of money runs out.

The success of the initiative – launched in April with £300m of Government cash, then topped up to £400m by Business Secretary Lord Mandelson – has helped to safeguard 350 temporary workers at Nissan until Christmas.

They were re-employed to cope with the rush of UK and European scrappage-related orders but Nissan could not offer any guarantees they would keep their jobs in the New Year.

The company axed 1,200 Sunderland staff at the start of the year when new car sales went into freefall.

Sunderland produced 11,000 Micras in September and Nissan sold almost 10,500 across Europe, a 4% increase on a year earlier. It makes the supermini Nissan’s second best-selling model after the Qashqai, also built in Sunderland, which recorded a 15% year-on-year September leap in sales.

The scrappage scheme, which offers buyers a £2,000 trade-in on a new car against motors at least 10 years old, was extended by Nissan to include eight-year-old vehicles.

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.”