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Renault refutes report

22nd July 2004, Page 19
22nd July 2004
Page 19
Page 19, 22nd July 2004 — Renault refutes report
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RENAULT IS denying reports, carried recently in the European automotive press suggesting it is planning to move production of its Trafic van away from the Nissan plant in Barcelona.

The plant. which produced 41,681 Trafics last year, also produces the Vivaro variant for Vauxhall and Opel. as well as the Primastar for Nissan.

Luton's IBC plant produces 85,000 Trafics a year. The Barcelona site is trying to clinch the deal to produce Nissan's next generation X-Trail SUV.

The reports are believed to have stemmed from Nissan's alleged desire to cut headcount at the Spanish factory by some 850 in order to reduce costs and to boost productivity.This has led to a deterioration in staff relations, with 3,000 workers downing tools fora one-day strike in April.

Both Renault and Nissan invested heavily in the Barcelona plant in order to facilitate Trafic production, spending €185m and €55m respectively.

Nissan has also announced a €400m investment in the site in order to allow for the production of European versions of its Pathfinder SUV and the next generation Pickup.

However, reports suggest that Nissan's management is looking for a 31% cut in production costs; if not the possibility exists that manufacture could be shifted to the Nissan facility in Thailand.

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Locations: Barcelona

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