Nissan Jobs at Risk as Pound's Strength Deters Investment

Tony Blair's attempt to save Nissan jobs in the North-east has been threatened by the company's decision to opt for a French production site for the next generation of the Micra. The high level of the pound has made it economically unviable for the company to maintain its Washington plant, despite the prospect of government aid worth up to £50m. Nissan's president, Carlos Ghosn, met with Mr. Blair and expressed concerns about the plant's ability to compete with French and European sites, citing the need for exchange rate stability and a signal that the UK would join the euro.

Key Takeaways:

• Nissan has chosen to produce the next generation of the Micra in France, citing the high level of the pound and the need for exchange rate stability as major concerns.
• The company's president, Carlos Ghosn, met with Tony Blair and expressed concerns about the Washington plant's inability to compete with French and European sites.
• Nissan is cutting costs by 30% to stay level with its French competitor, including sourcing components outside of the UK.
• Suppliers to the company will need to make components much cheaper, inevitably meaning that they would be made outside of Britain.
• Nissan is pumping £200m into its new Micra production and hopes for sales of £500m a year over 12 years.
• The high level of the pound is threatening 300,000 jobs in supplier firms for manufacturers in the UK.

Statistics:

• £50m: The amount of government aid offered by Tony Blair to save Nissan jobs in the North-east.
• 1,000: The number of jobs that could be saved by the government aid.
• 4,800: The total number of jobs at the Nissan plant near Sunderland.
• 75%: The proportion of the Nissan plant's output that consists of European car sales.
• £300m: The amount of capital investment that Nissan is pumping into its new Micra production.
• £500m: The projected annual sales of the new Micra over 12 years.
• 300,000: The number of jobs in supplier firms for manufacturers at risk due to the high level of the pound.

Sources:

• "Nissan shifts Micra production to France" (The Times)