Nissan workers burn tires to protest against plant closure in Barcelona
Hundreds of workers burning tires and shouting "war" have blockaded Nissan Motor Co's Barcelona plant after the Japanese carmaker announced it would shut it from December as part of a global restructuring plan to slash costs.
The closure of the plant and several facilities nearby highlights the challenges carmakers face as they try to cut costs and revive demand following the global health crisis.
The plant and the nearby facilities employ 3,000 workers and the closures could indirectly affect up to 25,000 jobs, unions say. The car industry accounts for about 10% of Spain's gross domestic product, according to producers association ANFAC.
The Spanish government, which said in January after meeting officials from the Renault-Nissan alliance that jobs at the plant were "guaranteed," said it regretted the decision and urged Nissan to look at other options for the factory.
But the chairman of Nissan in Europe, Gianluca De Ficchy, told reporters that the plant had a low utilization rate and output would not have improved even by assembling new models.
Nissan said it would slash its production capacity by a fifth to help reduce its fixed costs by 300 billion yen ($2.8 billion) as it looks to become smaller and more cost-efficient after posting its first loss in 11 years.
The decision is a blow for Spain at a time when unemployment is spiking and a steep recession is looming because of the coronavirus crisis, and the main opposition party criticized the leftist coalition government for failing the Nissan workers.
(Source: Reuters)
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