Nissan Motor Manufacturing UK - History

History

In February 1984, Nissan and the Government signed an agreement to build a car plant in the UK. The following month, a 799-acre (3.23 km2) greenfield site in Sunderland, Tyne and Wear, was chosen. As an incentive, the land was offered to Nissan at agricultural prices; around £1,800 per acre. The North East region of England had recently undergone a period of industrial decline, with the closure of most of the shipyards on the Wear and Tyne, and the closure of many coal mines on the once prosperous Durham coalfield. The high unemployment this caused meant Nissan had a large, eager, manufacturing-skilled workforce to draw upon. The site, once the Sunderland Airfield (formerly RAF Usworth), was close to ports on the Wear and Tyne, within easy driving distance of the international Newcastle Airport, and close to major trunk roads such as the A1 and A19. The established company became known as Nissan Motor Manufacturing (UK) Ltd, or NMUK. A ground breaking ceremony took place in July, and work began on the site in November 1984, by building contractors Sir Robert McAlpine.

One of Nissan's more controversial demands during the talks was that the plant be single-union. This was unprecedented in UK industry. In April 1985, an agreement was reached with the Amalgamated Engineering Union (AEU). Critics argue that this means the plant workforce is weakly represented. Nissan argues that as a result of the single-union agreement, its workforce is much more flexible than at other plants, and it points to the fact that not a single minute has been lost to industrial disputes at the factory.

In December 1985, McAlpine handed over the completed factory building to Nissan for the installation of machinery and factory components, ahead of schedule. Phase 1 of the plant construction was completed in July 1986, consisting of a Body, Paint and Final Assembly Line. The first Bluebird was produced shortly after and is on display at the Sunderland Museum and Winter Gardens. Official opening of the plant by then Prime Minister Margaret Thatcher and Nissan President Yutaka Kume took place in September 1986. By February 1987, NMUK had become the sole supplier of the Bluebird model to the UK market, and work on phase 2 of the plant began, with Plastics moulding and Engine assembly beginning in 1988, and was completed in May 1990. This would prove to be a landmark year for the plant, with the introduction of the P10 Primera, the first model to be wholly built at NMUK, replacing the Bluebird. By 1991, the plant turned its first profit of £18.4 million, and was awarded 'British Manufacturer' status by the Society of Motor Manufacturers and Traders (SMMT). By 1992, the plant began to produce two models, with the introduction of the highly successful Micra, which was the first Nissan to be voted "European Car of the Year.

The Early 2000s was a period of growth for the plant, with the plant being awarded contracts to build the updated Almera, becoming a three-model plant, and continuation of the Micra and Primera model changes. A fourth body style for the plant was introduced with the Micra C+C. 2006 saw the introduction of the Note model, in place of the Almera, and the introduction of the Qashqai. At this point, NMUK had built a reputation for being the most efficient plant in Europe.

By 2008, the falling sales of the Primera led to its demise, with the Qashqai becoming the hero model for the plant, with such a high demand that a night shift was introduced to keep up. The Qashqai also had the distinction of being the first model built at NMUK to be exported to the Japanese market, although heavy European demand later required Japanese market models be moved to the Kyushu plant. Nearly 5,000 workers were employed at the plant by this stage; however 1,200 of them were made redundant in January 2009 as a result on the onset of the recession which saw demand for new cars slump.

Despite a temporary suspension of the third shift due to the automotive industry crisis of 2008, the third shift was reintroduced, and the strong demand for the Qashqai has helped NMUK remain strong throughout the crisis.

After the crisis, Nissan announced that the new Juke model would be built starting in July 2010, replacing the Micra and that NMUK would be the European manufacturing location for the Electric Vehicle Leaf model beginning in 2011, as well as an on-site lithium-ion battery manufacturing facility.