Nissan announced it may expand the Dongfeng factory partnership globally as it restructures operations and cuts 11,000 jobs. The Japanese carmaker revealed it would shut seven factories worldwide but did not confirm where the closures would occur.
Nissan executive Ivan Espiona emphasized that UK operations will remain stable, reassuring workers at its Sunderland facility. “We have announced that we are launching new cars in Sunderland,” stated Espiona.
Facing declining sales in the US and China, Nissan said it will reduce global production by 20% as part of a cost-cutting effort. These layoffs add to the 9,000 job cuts Nissan announced last November, bringing the total to 15% of its global workforce.
Nissan employs roughly 133,500 people worldwide, also counting the 6,000 in Sunderland. The automaker has partnered with state-owned Dongfeng for over twenty years and is building cars in Wuhan.
The expanded factory partnership could lead to the shared use of global manufacturing sites amid tense trade relations between the UK, US, and China, which is Nissan´s long-standing collaboration. Meanwhile, the UK government defended its recent tariff deal with the US, denying claims it disadvantaged China.
A Chinese embassy spokesperson said Beijing had contacted the UK to express concern and request clarification over the agreement´s implications. China warned it would take action if the deal negatively impacted its interests.
Nissan also posted a $4.6 billion annual loss, due to factors like US tariffs and poor sales in China. Former CEO Makoto Uchida stepped down earlier this year after failed merger talks with Honda.
Espinosa, formerly Nissan´s planning chief, took over leadership in February. Nissan´s battery partner ASEC secured £1 billion in UK government funding to build a new battery plant in Sunderland. The site will support electric vehicle production, creating more high-paying jobs in the North East of England.
