[NEWS] Nissan to cut 11,000 more jobs and shut seven factories

    Nissan to cut 11,000 more jobs and shut seven factories
    -------------------------------------------------------
    Japanese carmaker Nissan has said it will cut another 11,000 jobs
    globally and shut seven factories as it shakes up the business in
    the face of weak sales.

    Falling sales in China and heavy discounting in the US, its two
    biggest markets, have taken a heavy toll on earnings, while a
    proposed merger with Honda and Mitsubishi collapsed in February.

    The latest cutbacks bring the total number of layoffs announced
    by the company in the past year to about 20,000, or 15% of its
    workforce.

    It was not immediately clear where the job cuts will be made, or
    whether Nissan's plant in Sunderland will be affected.

    The government said the plant was of "vital importance" to the
    north east of England, and that it would "engage closely" with
    Nissan over its restructuring plans.

    Nissan employs about 133,500 people globally, with about 6,000
    workers in Sunderland.

    Two-thirds of the latest job cuts will come from manufacturing,
    with the rest from sales, administration jobs, research and
    contract staff, said the company's chief executive, Ivan Espinosa.

    The latest layoffs come on top of 9,000 job cuts Nissan announced
    in November as part of a cost saving effort that it said would
    reduce its global production by a fifth.

    In February, talks between Nissan and its larger rival Honda
    collapsed after the firms failed to agree on a
    multi-billion-dollar tie-up.

    The plan had been to combine their businesses to fight back
    against competition from rival firms, especially in China.

    The merger would have created a $60bn (£46bn) motor industry
    giant, the fourth largest in the world by vehicle sales after
    Toyota, Volkswagen and Hyundai.

    After the failure of the negotiations, then-chief executive Makoto
    Uchida was replaced by Mr Espinosa, who was the company's chief
    planning officer and head of its motorsports division.

    Nissan also reported an annual loss of 670 billion yen ($4.5bn;
    £3.4bn), with US President Donald Trump's tariffs putting further
    pressure on the struggling firm.

    Mr Espinosa said that the previous financial year had been
    "challenging", with rising costs and an "uncertain environment",
    adding that the results were a "wake-up call".

    The car giant did not give a forecast for income in the coming
    year due to the "uncertain nature of US tariff measures".

    It said it expected flat profit this year even without accounting
    for the impact of tariffs.

    Last week, Nissan announced it had scrapped plans to build a
    battery and electric vehicle factory in Japan as it cuts back on
    investment.

    The firm has been in trouble in key markets, including China where
    growing competition has led to falling prices.

    In China, many foreign carmakers have struggled to compete with
    homegrown firms such as BYD.

    China has become the world's biggest producer of electric vehicles,
    with some established car-making nations having failed to
    anticipate demand for the new technology.

    In the US, another major market for Nissan, inflation and higher
    interest rates have hit new vehicle sales, although Nissan retail
    sales rose slightly last year.

    But sales fell 12% in China, and also dropped in Japan and Europe.


    <https://www.bbc.com/news/articles/clyg250pe81o>