Nissan, the prominent Japanese automaker, has revealed its intention to reduce its European workforce by 10% and shut down one of the two production lines at its Sunderland facility.
The company has started informing employees about the restructuring, which might result in cutting 900 office positions, including some in the UK. Nissan has introduced a global reorganization plan.
As a part of the revamp, the two current production lines in Sunderland will be merged into one, as per sources cited in the Mirror, without leading to any job redundancies. The plant currently employs approximately 6,000 individuals.
Sunderland, known for producing the Qashqai model, is currently operating below its full capacity. The introduction of production for the new Leaf model has been initiated, offering a significant boost to the plant’s workforce and the local community.
The decommissioning of one production line is paving the way for another manufacturer, reportedly a Chinese company, to potentially occupy the space. Speculations have linked Nissan with Chinese firm Chery, the owner of Omoda and Jaecoo, which is the fastest-growing Chinese group in the UK.
The Jaecoo 7, manufactured by Chery, secured the top position as the best-selling model in the UK in March, marking the brand’s first time leading the market. The surge in electric cars from China poses a formidable challenge to Western carmakers. Jaecoo, entering the UK market in February 2025, witnessed a remarkable 570% increase in sales in March, surpassing Volvo and outperforming Elon Musk’s Tesla brand. This marked the first instance since January 2023 that a Chinese-made model topped the UK sales chart. Following Jaecoo was the Ford Puma and then the Nissan Qashqai in sales figures for the month.
Earlier this year, Nissan and Chery finalized an agreement regarding the acquisition of Nissan’s manufacturing assets in Rosslyn, South Africa.
While the utilization of the spare production line is not confirmed yet, insiders suggest a potential deal could be announced in the upcoming months.
A spokesperson from Nissan stated, “Under the Re:Nissan recovery plan, we have been implementing decisive measures to enhance performance and create a more agile and resilient business that can swiftly adapt to market dynamics.” The discussions with European employees aim to streamline structures, reduce complexity, and ensure sustainable and profitable operations. The plan includes proposals for the partial closure of the Barcelona warehouse and transitioning to an importer model in Nordic markets. Additionally, the consolidation of production lines at the Sunderland Plant is part of the strategy to explore future opportunities for optimal plant utilization.
