Nissan Motor Co Ltd is to stop production of its upscale Infiniti models in the UK as part of a plan to withdraw the brand from western Europe, and focus on North America and China.
Production of the Q30 sedan and QX30 crossover models is to cease by July at Nissan’s Sunderland plant in northeast England, the Japanese automaker said on Tuesday.
It is the second blow within weeks for the UK’s biggest auto plant, after Nissan abandoned a plan to make the X-Trail sport utility vehicle (SUV) there, citing uncertainty over Brexit as a factor.
“In anticipation of its planned withdrawal from western Europe in early 2020, the company is working to find alternative opportunities for any employees who would be affected,” Infiniti said in a statement.
Operations in eastern Europe, the Middle East and Asia would not be affected.
Infiniti’s retreat from Europe marks the end of an 11-year effort to establish the brand in one of the world’s most competitive markets for luxury cars and the home of premium marques, including Volkswagen AG’s Audi, Daimler AG’s Mercedes-Benz and BMW AG’s namesake brand.
Last year, Nissan’s deliveries of Infiniti vehicles plunged 34 percent to just 10,958 units in the EU, compared with Audi’s total of 700,674 vehicles, BMW’s 778,343 and Mercedes’ 838,358 in the region, European Automobile Manufacturers Association data showed.
Even Japanese rival Toyota Motor Corp’s Lexus last year sold 44,961 vehicles in EU countries, up 2.7 percent from 2017.
Sunderland last year made about 12,000 Infinitis, a sliver of its more than 442,000 total units produced.
The two British-made subcompact models are to disappear from the brand’s lineup globally, a spokesman said.
Nissan is to electrify its luxury division’s portfolio from 2021 and discontinue diesel offerings to focus on its SUV lineup in North America and unveil five new models in China.
Automakers are streamlining their portfolios and production sites among growing global pressures, including trade disputes, the costly shift to electric vehicles and weakening markets.
The UK has been particularly hard hit, with Brexit adding another drag.
Honda Motor Co last month announced that it would shut down its plant in the UK, while Jaguar Land Rover Automotive PLC is cutting about 4,500 jobs, most of them in Britain.
Nissan’s Sunderland plant employs more than 7,000 people, 250 of whom are focused on the Infiniti models, a spokesman said.
“The company will place more focus on its SUV lineup in North America, bring five new vehicles to China over the next five years, work to improve quality of sales and residual value, and realize more synergies with Nissan Motor Co,” Infiniti said.
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