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Nissan to cut 100s of UK jobs

Nissan will cut hundreds of jobs at its Sunderland plant, Britain's biggest automotive factory, as it tackles a declining demand for diesel models across Europe, a source told Reuters on Friday. 
Posted on 23 April, 2018

The company's sales in Britain have fallen 35 per cent so far this year, worse than overall demand in the sector, which is down 12 per cent.  In a statement, Nissan said, “We will be managing a planned short-term reduction in powertrain supply and plant volumes.” David Bailey, a professor of industrial strategy at Aston University, said to the Guardian: “Certainly there is a massive shift away from diesel vehicles across Europe. There is a perfect storm combining "dieselgate," legislative changes and the reduction in resale values for owners of the cars. “Nissan is exposed to that, as about 25 per cent of what Nissan produce up in Sunderland is diesel. But they have a lot of hybrid technology after the takeover of Mitsubishi which we can expect to see more of, as well as the electric technology behind the Leaf, so I think they are well positioned to see through this temporary shock.” Jaguar Land Rover also announced they are cutting around 1,000 jobs and output at two of its factories after a fall in sales which the industry has blamed on confusion with the government's diesel policy, with a tax hike coming into force this month.  Demand for diesel in Britain fell by a third this year due to continued consumer concern over planned tax rises and proposed bans.

The Society of Motor Manufacturers and Traders (SMMT) said the decline in diesel sales suggested owners were keeping their old cars longer. The society also described the drop-off in diesel demand as “disappointing”, given that the “latest cars are the cleanest in history and can help address air quality issues”. "The ongoing and substantial decline in new diesel car registrations is concerning, particularly since the evidence indicates consumers and businesses are not switching into alternative technologies, but keeping their older cars running," SMMT Chief Executive Mike Hawes said.