7:51 am, February 7, 2023
A Nissan top executive has questioned the competitiveness of the carmaker’s Sunderland factory.
Soaring energy costs and an eroding supply chain are making the UK’s largest car plant uncompetitive and ‘government support’ is needed, according to The Times.
The admission came at the official announcement of the rebooted alliance between Nissan and French carmaker Renault, as reported by Car Dealer last week.
There, executives revealed an electric replacement for the Micra supermini would be built at Renault’s new ElectriCity plant in northern France.
Nissan executives praised the Sunderland factory and insisted it remains a ‘core plant’, but added the ‘UK is challenging’, and Nissan needs ‘a supplier base’.
Chief operating officer, Ashwani Gupta, said Sunderland’s survival depended on three main issues.
Firstly, future investment would be made more attractive if UK government support was available. And secondly, if there was a reduction in the cost of manufacturing, with rising energy costs making a UK car factory more expensive to run than a Continental one.
Lastly, a more local supply chain to drive down costs is desired.
According to the newspaper, when asked whether Sunderland could regain its competitive edge, Gupta said: ‘That is a question that has to be answered.’
And when asked how it could reclaim competitiveness, Gupta replied: ‘The support of government, because we do not have a big [automotive industry] in the UK.’
Gupta refused to comment further on what form the government support should be.
He did reveal, however, that UK supply chain input had fallen to an all-time low.
‘It is challenging to get to 40 per cent,’ said Gupta.
Sunderland currently builds the Leaf, Juke and Qashqai – the latter took the title of the UK’s best-selling car last year.
However just 238,000 cars rolled off production lines last year, down by more than a half on the 500,000 total in 2016.
Car Dealer Live – the future of the car dealer – exclusive conference features talks from leading car dealers, Google and Auto Trader among much more. Find out the full event details and book tickets.
