Nissan working with Governments of Spain and Castilla y Leon to secure Avila plant future
Nissan's ‘Avila Challenge' industrial plan offers a roadmap to ensure the long term, sustainable future and competitiveness of its Avila plant in Spain.
Ávila, March 5th, 2010 - Nissan confirmed to Local Work Councils today that it is in discussions with the Governments of Spain and Castilla y Leon to secure the future of the Avila plant. It also completed the information given about the ‘Avila Challenge' industrial plan, offering a roadmap to ensure the long term, sustainable future and competitiveness of its Avila plant in Spain.
Like other manufacturers, Nissan's Light Commercial Vehicle (LCV) business has been strongly impacted by the world economic and financial crisis. In 2009, Nissan's European LCV sales were down by nearly 34% and light duty truck sales were down by 37% compared to 2008.
"Although the market conditions are still uncertain, we are confident that, thanks to our new industrial plan, the Avila plant can pull through this difficult period. This industrial plan could possibly help us secure 500 jobs at the plant and build a business case for the introduction of a new model at the plant," said Fumiaki Matsumoto, Vice President, Nissan Spanish Industrial Operations.
Part of the industrial plan calls for a collective agreement with the Unions that to help address the headcount surplus at the plant. Nissan proposed reducing headcount through soft measures including: early retirement and voluntary leaves.
The company has also asked to extend the current temporary lay off ending March 31, for two months.
Nissan would like to thank the Junta de Castilla y Leon and the Spanish Ministry of Industry for the understanding and continuous support given during all the process. However, this plan remains a proposal. An agreement from Unions is necessary for the Industrial plan to be achieved. "If there is a failure to reach an agreement with the Unions in the next two months, Nissan will have no choice but to withdraw its industrial proposal," Matsumoto cautioned.
Background:
- Sept 23, 2009: Temporary layoff of 650 employees to adjust to falling demand in our markets.
- Oct. 29, 2009: Suspend of production at the plant for 75 shifts per worker between November 2009 and March 2010: temporary layoff.
- Feb 2010: Revised annual production confirmed of 11K each year until 2012 compared to a capacity 26K (Linked to economic crisis and affecting the entire LDT industry).
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Contact:
Alfredo Castaño, Spain Corporate Communications (+34 6 38 03 00 67)
Laura Jacquier, Europe Corporate Communications (+33 6 24 66 65 19)