Nissan’s difficult year has been revealed in accounts that show a drop in turnover and profit, as well as production numbers and headcount.
The region’s largest company saw its turnover for the year ending March 31 fall from £6.26bn to £6.1bn, while operating profit fell from £149.6m to £145.7m.
The accounts cover a period of upheaval for Nissan both globally and at its Sunderland factory, with the company suffering from wider issues in the automotive industry and uncertainty surrounding the UK’s Brexit deal.
Vehicle production fell during the period from 487,000 to 415,000. The accounts also confirm previous announcements that production of the X-Trail and Infiniti models would no longer happen at Sunderland, though investment in the Juke and Qashqai models would continue as planned.
Nissan also revealed that it had set up working groups to deal with a wide range of Brexit-related issues, including supplier readiness, logistics, sales and customs regulations.
The accounts say: “The company is committed to maintaining its world class quality, cost, devlier and productivity so that the manufacturing plant and its associated facilities remain competitive and continue to attract investment in new models.
“The company continually monitors the UK competitive environment and any changes to this (whether caused by government, competitor activities, legal cases or similar) could add to the long term challenges faced by the business.
“Any changes to laws and regulations relating to employment (including the interpretation and enforcement of those laws and regulations) could, directly or indirectly, increase Nissan’s labour costs, which, given the size of our workforce, could have an adverse effect on the company.”
The last 18 months have been a time of global turmoil for Nissan, with the company losing two chief executives and proposing to cut 12,500 job cuts after a 10-year low profit figure.
Nissan’s European chairman Gianluca de Ficchy visited the Sunderland plan in October to warn that a no-deal Brexit would mean the ‘entire business model for Nissan Europe will be in jeopardy’.
In an interview with the automotive press today, Mr de Ficchy said Nissan would be replacing all of the models in its SUV range - including the Qashqai and the Juke - within the next 18 months.
It is not immediately clear whether those plans will affect production at the Sunderland plant.
