Automakers to lower production in Britain
Written by Writer on Friday, October 24th, 2008
Automakers to lower production in Britain
LONDON (Kyodo) Japanese automakers operating in Britain have announced production cuts due to the slowing European economy, but Toyota Motor Corp., Nissan Motor Co. and Honda Motor Co. have so far announced no workforce reductions.
Carmakers from other countries have also cut back in Britain in recent months, but given the size of their footprint, the state of the Japanese producers is particularly important for the economy.
Nissan, the biggest automaker in Britain, announced Tuesday it will halt production of the Micra, sold in Japan as the March, and the NOTE for two weeks.
The company, which has a factory in Sunderland, northeast England, will also reduce the rate at which the vehicles are made in November.
Nissan said the step is being taken “in order to manage volume, reduce existing inventory and prevent oversupply to a weakening market.”
It said the Japanese market as well as exports to Russia and Spain have been hit particularly hard by the global economic slowdown.
Output at the Sunderland plant, considered one of Europe’s most efficient, has been boosted in recent years with production of the Qashqai sport utility vehicle, known in Japan as the Dualis.
Demand for the SUV has remained relatively robust, according to the company.
A Nissan spokeswoman said production of all vehicles this year is expected to be “slightly up” from last year’s 353,718 units. The plant employs around 4,270 people.
Workers at Nissan will receive extra training when they are not needed on the production line, and a number of temporary contracts will not be renewed, the spokeswoman said.
Despite the reduction in output, Nissan is optimistic about the plant’s future. It said recently a new compact car yet to be unveiled will be produced at Sunderland starting in 2010.
The other Japanese carmakers are also feeling the pinch.
In August, Toyota’s British arm, based in the English Midlands, announced it would reduce output of the Auris and Avensis models by around 15,000 vehicles over a five-month period.
As with Nissan, there have been no compulsory job reductions among the plant’s 3,900 employees. Workers are receiving extra training during the slow period. Some temporary contracts have not been renewed.
On Wednesday, the Daily Telegraph newspaper reported that Honda’s British arm is to make 22,000 fewer Civics between December and March due to falling sales in Western Europe.
Honda to downshift
Kyodo News
Honda Motor Co. will cut its U.S. production of large vehicles mainly sold in North America by 22,000 units due to slack sales in the wake of financial turmoil and gasoline price hikes, company officials said Wednesday.
Japan’s No. 2 automaker will cut production of the Pilot sports utility vehicle and the Odyssey minivan at Honda Manufacturing of Alabama LLC for five months from November, they said.
With the cut in production, HMA’s overall output in fiscal 2008, ending next March 31, will be reduced by 16 percent from the original plan to 267,000 units, as the Alabama plant earlier slashed output by 27,000 units between August and October.
