Slump in demand for diesel engine behind job cuts at UK's biggest car factory
James Attwood, digital editor
20 April 2018

Nissan is set to cut hundreds of jobs at its Sunderland factory due to declining demand for diesel-engined cars, according to reports.

It is unclear exactly how many jobs will be lost due to the layoff, which was reported by the Financial Times. Around 6700 people are currently employed at the Nissan Motor Manufacturing UK (NMUK) plant, which produces the Qashqai, Juke, Leaf and X-Trail, along with the Infiniti Q30 and QX30.

The rapid decline in demand for diesel – in the UK, sales of diesel cars fell by 37% in March – is understood to be behind the move. Around a quarter of the cars produced at Sunderland are diesel-engined.  

A spokesman for NMUK said the job cuts are linked to the facility “transitioning to a new range of powertrains”. He added: “As we make the operational changes to support this, we will be managing a short-term reduction in powertrain supply and plant volumes at NMUK in line with our 2018 business plan.”

The new Leaf is being built at Sunderland, one of three worldwide Nissan plants producing the second-generation electric vehicle.

While Nissan has previously said the failure to agree a deal over Britain's departure from the European Union could lead to the Sunderland factory's closure, the spokesman said the move was "not related to Brexit" and added that volumes are expected to increase at the plant when the new Juke, Qashqai and X-Trail are launched in the coming years.

Jaguar Land Rover recently cut 1000 contracted agency workers at its Solihull plant due to the fall in diesel sales.

Read more

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Jaguar Land Rover confirms 1000 contract jobs to go due to diesel slump

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Comments
22

20 April 2018

Can’t say it is Brexit influences as they got paid by the government to stay in Sunderland?...

20 April 2018

It wouldn't be the end of the world if Nissan left the UK.

UK taxpayers are subsidising Nissan's profits. The profits are taken to Japan.

What is the point of allowing UK tax to go to Japan?

A new UK car company can be created - one that creates desirable cars.

20 April 2018
max1e6 wrote:

It wouldn't be the end of the world if Nissan left the UK.

UK taxpayers are subsidising Nissan's profits. The profits are taken to Japan.

What is the point of allowing UK tax to go to Japan?

A new UK car company can be created - one that creates desirable cars.

 

Oh dear God no. Taxpayer subsidies to Nissan will be a drop in the ocean compared to government support needed to establish a new car company in the same factory.

 

20 April 2018

I did not suggest using Nissan's factory.

No taxpayer funded subsidies should be given to any car business.

20 April 2018
max1e6 wrote:

No taxpayer funded subsidies should be given to any car business.

Why? If that business, whatever that business may be provides jobs and prosperity to a relatively deprived area. What is the cost of doing nothing? Possibly even greater both economically and socially. Subsidies can be very good incentives for enticing investment and drastically reducing the welfare burden on the taxpayer in the longterm.

21 April 2018

Because we live in a capitalist society.  Companies must operate on their own without government help.  Don't get me wrong, I'm all for nationalised gas, electricity, water and rail (because they are all vital), but everything else should live or die by the market.

21 April 2018
Bazzer wrote:

Because we live in a capitalist society.  Companies must operate on their own without government help.  Don't get me wrong, I'm all for nationalised gas, electricity, water and rail (because they are all vital), but everything else should live or die by the market.

It has nothing to do with capitalism, socialism or any other ideology. It's very basic economics. Government poviding subsidies or incentives to a private entity to assist in creating jobs isn't nationalisation, it often doesn't even come in the form of cash, it could be free leasehold of land for X years to build a facility on and assistance with planning applications, it can be covering the cost of recruitment and training for workers. Forgive me for being presumptuous, but are you referring to the UK with the capitalist comment? If so, have you ever used the NHS?

20 April 2018
max1e6 wrote:

It wouldn't be the end of the world if Nissan left the UK.

UK taxpayers are subsidising Nissan's profits. The profits are taken to Japan.

What is the point of allowing UK tax to go to Japan?

A new UK car company can be created - one that creates desirable cars.

It may not be the end of the world to you, but the workers in and around Sunderland may have a very different opinion.  The cost of subsidies provided by government to compaines need to be weighted against the economic benefit to the area, such as jobs, regeneration and supply chains.  Both elements have a trickle down effect on the area economy.  Many would agrue the subsidy money very well spent, regardless of where any profits end up. 

20 April 2018
Marc wrote:

max1e6 wrote:

It wouldn't be the end of the world if Nissan left the UK.

UK taxpayers are subsidising Nissan's profits. The profits are taken to Japan.

What is the point of allowing UK tax to go to Japan?

A new UK car company can be created - one that creates desirable cars.

 

Quite right Nissan employees know this. That's why they voted to harm Nissan by voting for Brexit.

It may not be the end of the world to you, but the workers in and around Sunderland may have a very different opinion.  The cost of subsidies provided by government to compaines need to be weighted against the economic benefit to the area, such as jobs, regeneration and supply chains.  Both elements have a trickle down effect on the area economy.  Many would agrue the subsidy money very well spent, regardless of where any profits end up. 

20 April 2018

Many of the younger people at Nissan are temporary workers. They can be let go at any time.

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