Hashimoto predicts saled jump at Nissan plant
Jul 9 2010 by Peter McCusker, The Journal
NISSAN supplier Hashimoto expects 2010 revenues to be up 25% on last year as sales of the Qashqai surge ahead and pre-sales of the new model the Juke pass the 15,000 mark in just four weeks.
The Boldon, South Tyneside-based company which principally supplies car parts for the Japanese giant’s biggest UK plant in Washington has upwardly revised its annual sales projections for 2010 from £24.5m at the start of year to £28.5m.
Hashimoto, which produces plastic trims and radiator grills, is also aiming to break even by the end of this year after plunging £3.6m into the red in 2009.
Director Chris Robinson said: “Nissan has experienced a strong recovery this year and across the UK new car sales figures have been fairly positive.
“Our expectations for the full year have risen in the last few months as sales of the Qashqai have continued to rise.
“But the market is different depending on the make of car and the sales figures for our other two main customers, Honda and Toyota, are recovering more slowly.”
Hashimoto has experienced a tough couple of years, like most of the motor industry, with sales falling from a record level of £34.5m in 2008 to £21.5m in 2009 as the market for new cars fell off a cliff in the recession. It cut production in line with demand, but the introduction of the Scrappage scheme helped boost its output for parts for the Nissan Micra.
Mr Robinson continued: “Sales of the Qashqai were unaffected by the Scrappage scheme and as the Micra comes off production at Sunderland we have been successful in securing the same net volume of work for the Juke.”
Mr Robinson went on to say that there was still nervousness in the market about the length and depth of the recovery.
Hashimoto lost £3.6m last year and £570,000 in 2008 with its Japanese parent company Faltec providing £2m of support last year.This brings the total value of loans from the parent company to over £7m.
Mr Robinson said rising oil and steel prices continued to be a drag on profitability although he expects to break even this year and return to the black after that.
During the recession the company cut 130 jobs reducing its total workforce to 350. It has since recruited 70 temporary staff but has no immediate plans to recruit permanent workers.
Earlier this month Nissan said it had registered just over 15,000 orders across Europe for its new crossover vehicle the Juke. Manufacture of the Juke will start at Sunderland within the next few weeks with orders being delivered in October.
In June Nissan returned to round-the-clock working at its Sunderland factory working to cope with demand for the Qashqai.
