Nissan to outline Barcelona plant's future before summer

Nissan has told union leaders at its Barcelona plant that they will be informed about the factory's future before summer.

The Nikkei newspaper reported on Thursday that Nissan is planning to reduce its global capacity by 20 percent and close the Barcelona factory, shifting its production to Renault plants.

A Nissan Spain spokesman declined to comment on the report.

"The company does not comment rumors or information about the future of the plant," the spokesman said, adding that Nissan's European chairman had earlier told union leaders at the plant they would be informed about the factory's future before summer.

The factory produces pickups and electric vans.

Nissan may be looking at the possibility of closing its Barcelona factory but no final decision has been made as the company plans a new global strategic direction, two sources with direct knowledge told Reuters.

Nissan earlier this month pushed back against reports that it reduce its European presence to focus on the U.S., China, and Japan, relying on its two best-selling SUVs, the Qashqai and Juke, in the region.

The plant partially reopened on May 4 after the coronavirus outbreak forced a total shutdown in mid March, but a workers strike brought production back to a total halt from May 6, the spokesman said.

As a consequence of the strike, over 2,000 out of the 3,000 workers in Nissan's plant and related facilities in the Barcelona area have been temporarily laid off, he added.

A plant union leader did not immediately respond to a request for comment.

Nissan is planning plan $2.8 billion in cost cuts and the scrapping of its Datsun brand as part of a three-year turnaround plan that will be unveiled on May 28, Bloomberg reported.

Nissan has been in turmoil since the November 2018 arrest of former Chairman Carlos Ghosn. The automaker warned last month it expects to post a loss for the latest fiscal year through March, as the pandemic shuttered showrooms in major markets and the economic fallout dented consumer demand for new cars.

Reuters and Bloomberg contributed to this report