Nissan's Strategy for Preserving Its Factories? Produce Chinese Vehicles | Carscoops

      The automobile manufacturer is shutting down seven of its 17 factories worldwide but has the potential to enhance operations in the UK.

      Nissan’s Sunderland facility is operating at less than 50% of its capacity.

      A collaboration with Dongfeng is intended to improve the plant’s profitability.

      Recently, the company implemented cost-cutting strategies, which include the closure of seven global factories.

      A few months back, Nissan appeared confident that a partnership with Honda would ensure its survival. However, that arrangement has since fallen through, leading Nissan to announce several cost-saving strategies to sustain operations. The company is now contemplating a surprising decision to share its international factories with its Chinese partner, Dongfeng.

      Nissan is closing down seven of its 17 global factories as part of efforts to streamline its operations. However, the Sunderland plant in the UK, one of its key facilities, will remain operational. Ivan Espinosa, the company head, mentioned there’s potential for Dongfeng to manufacture vehicles there. Moreover, Nissan intends to increase its electric vehicle production in the UK.

      During a recent Financial Times conference, Espinosa stated, “We are open to collaborating with them. Everything is on the table. We could utilize some of our joint efforts outside of China, inviting them to join our production systems.”

      As reported by The Guardian, the Sunderland plant is currently underutilized. Last year, it produced only 282,000 cars, while it has the capacity to manufacture up to 600,000 vehicles annually. Allowing Dongfeng to produce vehicles at this site would not only create more jobs but also enhance the plant’s profitability.

      Nissan and Dongfeng already have a partnership for vehicles aimed at the Chinese market in Wuhan, but Espinosa did not provide any details regarding specific models that might be produced in the UK or the timeline for such developments.

      Adding to the support for Nissan in the UK is a forthcoming electric vehicle battery plant in the region. Set to be established by its battery partner Envision AESC, the £1 billion (approximately $1.3 billion) facility will be the largest battery production site for vehicles in the country, supplying cells to three of Nissan’s electric vehicles.

      While the company is maintaining its dedication to production in Britain, it seeks assistance from the government. Espinosa has urged local authorities to provide support, particularly concerning energy expenses, which are significantly higher in the UK compared to some of its other manufacturing locations.