Highest Productivity in the Industry - But Still Crippled by the Crunch

The factory has the highest productivity rates in the European car industry. But not even Nissan’s flagship factory at Sunderland has been unscathed by the dramatic fall in new car orders…

It looks like the 27% fall in new car orders in December 2008 was the final straw for Nissan management. Before December, Nissan’s sales figures had bucked the national trend and were only slightly down on 2007. However, it looks like Nissan has now been caught up in the free-falling new car sales that have damaged car manufacturers around Europe.

Prior to the announcement of today’s job losses, Nissan had implemented a variety of actions designed to reduce production capacity without needing to lay workers off. The Sunderland factory took an extended Christmas holiday; employees reduced their shift hours; extra training courses were laid on. But sooner or later, action has to be taken to reduce fixed costs - particularly in the face of a substantial drop in demand. Let’s hope that the skills of those who will leave Nissan’s employment are not permanently lost.