Nissan to close Spain plant, axe 2,800 jobs as profits plunge

Nissan said it was closing its Barcelona factory with the loss of 2,800 jobs as the Japanese carmaker reported its first net loss in 11 years.

The industry giant added that it was restructuring its business and reducing the number of models it produces.

It reported a $6.2bn (£5bn) full year net loss as worldwide sales between January and April had plunged 31.1% year on year, although these were already on a downward trend before the coronavirus outbreak.

"I will make every effort to return Nissan to a growth path. We must admit failures and take corrective actions,” said Nissan chief executive Makoto Uchida.

The firm said its factory in the British city of Sunderland in the north east employing around 7,000 people and vital to the local economy, would stay open and resume production in June as lockdown measures eased.

Nissan said on Thursday it would focus on several "key markets", including Japan, North America and China, with a focus on electric vehicles and sports cars.

Under the new four-year plan Nissan said it would will slash its production capacity and model range by about around 20% to help cut YEN300bn from fixed costs.

It was also shutting a plant in Indonesia, leave the South Korean market and pull the Datsun marque from Russia as it moved to share global production with partners Renault and Mitsubishi.

Renault said the Nissan losses would drag on its own net earnings by €3.6bn in the first quarter.