Nissan could hand a boost to its Sunderland plant by switching production of two Renault models from a factory in Spain, reports suggest.
The company - which has described the reports as “speculative” - is drawing together plans to cut production after a global slump in the new car market caused by a big reduction in demand for diesel vehicles, plus falling sales in China and the US.
Those plans will be outlined at the end of the month, but Japanese financial newspaper Nikkei Shimbun has reported that the company could look to shut a plant in Barcelona and switch some of its production to Sunderland.
The Sunderland plant, which has received massive investment in recent years, has some spare capacity after the cancellation of two models in 2019, and reports suggest that it could be used to make Renault’s Kadjar and Captur models.
Nissan and Renault have been in an alliance since 1999 but that partnership has been strained since the arrest - and subsequent escape - of former chairman Carlos Ghosn. Mistibushi is also part of the alliance.
A statement from Nissan’s Japanese headquarters described the reports as “speculative” but signalled that the company would be making an announcement on production changes at the end of the month.
It said: “On May 14, 2020, the Nikkei Shimbun published a speculative story on Nissan’s future production strategy. Nissan has not made any official statement on this subject. Nissan’s midterm planning is in progress and has not been concluded yet.
“As announced earlier, Nissan will announce a revised midterm plan along with fiscal year 2019 financial results on May 28.”
Nissan, along with other automotive manufacturers, went in to the coronavirus crisis battling a number of major challenges, including a drop in demand for diesel cars, plus falling sales in China and the US.
The company announced in November that it would reduce global production by 10% and cut around 12,500 jobs worldwide, though unions said they were hopeful Sunderland would escape the cuts.
Production at Sunderland was suspended in March as a result of the coronavirus crisis, though it brought back a small number of workers in its drivetrain division in April and later said it was looking at a phased resumption of production at the start of June.
