Nissan Announces Wave of Layoffs in Spain

The Japanese automaker Nissan has announced the layoff of 1,680 employees at its factory in the Spanish city of Barcelona, which is attributed to a decline in demand for its four-wheel-drive vehicles and pickups due to the economic slowdown in Europe.

"Several factors led to this decision, one of which is the global economic crisis that has resulted in a drastic decline in overall production volume," the company stated in a press release. Nissan currently employs 6,100 people in Španjolskoj. The statement further cites ongoing pressures related to the introduction of CO2 emission standards and rising fuel prices as reasons that have led to the decline in demand for Nissan’s four-wheel-drive vehicles and pickups, which are produced at the company’s factory in Barcelona.

This announcement, one of the largest in the automotive industry in recent weeks, is just the latest in a series of bad news for European factory workers in the automotive sector. Since the beginning of the year, Swedish automaker Volvo, owned by Ford, has cut 6,000 jobs, or 25 percent of its total workforce.

French Renault plans to lay off about 1,000 workers at its factory in Sandouville in northwestern France, due to a decline in sales of the Laguna sedan. Its national competitor PSA, which owns Peugeot and Citroen, will cancel night shifts, affecting around 300 temporary jobs.

German BMW plans to temporarily close several factories in Germany this month, and Opel, a subsidiary of General Motors (GM), is also reducing production. Austrian contract manufacturer Magna-Steyr has announced that starting in November, it will temporarily shift about 2,600 workers at its factory in Graz to part-time contracts. In addition to high oil prices, the automotive market is further pressured by a decline in demand due to falling purchasing power of consumers and difficulties in obtaining credit.

The European Automobile Manufacturers Association (ACEA) stated in early October that it is deeply concerned about the loss of consumer confidence and the slowdown in economic growth. According to data from the association, new car sales in Europe weakened by 7.3 percent year-on-year in July, and by 15.6 percent in August.

In some countries, the situation is even worse. The so-called ‘Detroit Three’ – the giants of the American automotive industry GM, Ford, and Chrysler – recently requested a $25 billion loan from the government. At the same time, some segments of that market seem immune to the ongoing financial turmoil. Luxury brands like Ferrari continue to see high demand – the new California sports car model from the Italian manufacturer is already sold out until 2011. (H)