Nissan Cuts 10% of European Workforce; Chery in Talks to Share Factory

[Company Update] Nissan Motor has launched a restructuring initiative in Europe, cutting 10% of its workforce and consolidating production lines in the UK.

Core Developments: Layoffs and Capacity Reduction Proceed in Tandem

Nissan will cut approximately 900 employees in Europe—about 10% of its total European workforce of 9,300—across the UK, France, and Spain. At its Sunderland plant in the UK, two production lines will be merged into one, as current utilization stands at only around 50%.

Strategic Rationale: Focusing on Core Markets to Stem Losses

This move is part of Nissan’s global revival plan, "Re:Nissan," which aims to cut 20,000 jobs globally and close 7 plants by fiscal year 2027, concentrating resources on the U.S., China, and Japan—the company’s three core markets. Nissan has reported massive losses for two consecutive years, with a net loss of 550 billion yen in fiscal year 2025.

Industry Impact: Chinese Automakers May Take Over Idle Capacity

Chery Automobile is currently in negotiations to jointly utilize the Sunderland factory, potentially revitalizing underperforming assets. Meanwhile, Nissan’s sales in China are rebounding, with Dongfeng Nissan reporting a 2.6% year-over-year increase in sales for the first quarter of 2026.