Government asks Nissan for full details over factory closure plans

The Government has asked Nissan for more details about its plans to shut seven factories globally amid concerns over the future of its Sunderland facility.

Downing Street said it is a “concerning” time for workers at the Japanese firm.

Nissan currently employs around 6,000 people at its factory in Sunderland.

Earlier on Tuesday, the company revealed it will extend a major restructuring plan in order to slash costs after recent weak demand in the US and China.

The car maker said it will cut 11,000 more jobs than originally planned, having announced in November that it would axe 9,000 roles.

The group said its major overhaul will see it reduce its number of plants from 17 to 10 by 2027.

Changes are expected to affect around 15% of the company’s workforce but it is not currently known where jobs will be cut across its global operations.

A Number 10 spokesman said: “We recognise this will be a concerning time for workers at Nissan and their families.

“Whilst this is a global decision taken for commercial reasons, we have a long-standing partnership with Nissan and will continue to work closely with them on their manufacturing future in the UK.

“We’ve asked the company to share its full plan so we can assess the impact in the UK.”

Last month, Alan Johnson, senior vice president for manufacturing for Nissan’s Africa, Middle East, India, Europe and Oceania operation, cautioned that the UK was “not a competitive place” to build cars as he called for Government support.

The company is seeking to reduce its production capacity after two recent profit downgrades.

The firm has been affected by stalling sales in China and the US.

The company said the shake-up will help “create a leaner, more resilient business” as it also cautioned over the impact of US President Donald Trump’s plans for 25% tariffs on cars imported into the US.

The vast majority of cars made in the UK will be subject to a 10% tariff after the UK-US trade deal agreed last week.

Nissan has said it is targeting 250 billion yen (£1.28 billion) of cost savings against the previous financial year.

This will be secured through the closure of plants, work shift adjustments and reduced capital spending, including through cancellation of a planned lithium battery plant in Kyushu in Japan for its electric vehicles.

Nissan president and chief executive Ivan Espinosa said: “In the face of challenging full-year 2024 performance and rising variable costs compounded by an uncertain environment, we must prioritise self-improvement with greater urgency and speed, aiming for profitability that relies less on volume.

“As new management, we are taking a prudent approach to reassess our targets and actively seek every possible opportunity to implement and ensure a robust recovery.

“Re:Nissan is an action-based recovery plan that clearly outlines what we need to do now.”