FOR IMMEDIATE RELEASE
21 May 1999
TOP CAR PLANT HIT BY STRENGTH OF STERLING
Nissan Motor Manufacturing (UK) Limited has announced pre-tax profits of £23 million for the 1998 financial year. Despite record production and the Sunderland plant becoming the UK’s biggest producing car plant in the UK, profits were considerably lower than achieved in 1997.
The continuing strength of sterling, which affects the export of 75 per cent of NMUK’s annual production, was the main factor in the deterioration of profits at the Sunderland plant. The strength of sterling has also enabled Continental car makers to attack the UK market aggressively, NMUK’s biggest European market.
Commenting on the results John Cushnaghan, managing director, NMUK, said:
“During 1998 the strength of sterling meant that our profit margins were significantly reduced and consequently our profits suffered.
“This has been a direct consequence of the unrelenting and uncompetitive level of the pound against all other European currencies,” concluded Cushnaghan. He emphasised that the Sunderland plant remains the most efficient car plant outside of Japan but even aggressive cost reduction activities cannot compensate for the sustained strength of sterling.
ends…
For further information contact:
Daniel Ward Corporate Affairs Director 01923 899930
Email: daniel.ward@nissan.co.uk
Lesley Alder Corporate Press Officer 0191 419 3300
24787/210599
