One of the UK's biggest unions said it was seeking assurances about the future of Nissan's Sunderland plant following news of merger talks between the Japanese car manufacturer and Honda.
The potential tie-up, which also includes Mitsubishi, would create a combined group worth £46billion, despite fears around the future of British manufacturing.
The development adds fresh uncertainty for the Sunderland facility, coming shortly after Nissan's announcement of plans to cut 9,000 jobs globally.
Unite's national officer for automotive Steve Bush confirmed the union would be "monitoring the progress of the merger talks closely and seeking assurances from Nissan about any potential impact on its UK operations."
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The proposed merger would create an automotive powerhouse with annual sales of nearly £182billion, making it the third largest car manufacturer globally. It would also employ 360,000 people across its operations.
Honda aims to finalise the agreement by June, with plans to float a new parent company on the Tokyo Stock Exchange in August.
While presented as a merger, industry watchers note that Honda appears to be taking the lead, with rights to select most directors for the new organisation, including key executives.
The companies argue that a combination is necessary to compete against Tesla and Chinese manufacturers like BYD in the electric vehicle market.
READ MORE: Stellantis confirms major U-turns despite battering UK industry with Luton plant closure and job losses
Nissan's Sunderland facility, Britain's largest car plant, currently employs more than 6,000 people and produces the Qashqai, Juke and Leaf.
However, industry observers suggest the merger could potentially benefit the UK plant, with speculation that Honda might return to British manufacturing using Sunderland's spare capacity.
Reports indicate the plant is currently operating at only half of its capacity, prompting discussions about potential new opportunities.
Industry sources suggest Honda executives have discussed the possibility of producing vehicles at the Sunderland site.
Such a move would mark Honda's return to UK manufacturing, following its departure from Swindon in 2021. The Japanese firm had previously blamed Brexit for closing its Swindon plant, which had employed thousands.
Nissan has not yet indicated whether or how the Sunderland operation might be affected by the merger announcement.
Chancellor Rachel Reeves said the Government is "working to protect jobs" at the Sunderland plant amid the uncertainty.
During a visit to Sunderland, she emphasised how the Government was "not just letting things take their course" and would "fight to keep all the jobs here in Britain".
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It comes just a year after Nissan tripled its investment in electric vehicle production in the UK, with up to £2billion of new investment.
Speaking at the time, former Prime Minister Rishi Sunak said: "Nissan’s investment is a massive vote of confidence in the UK’s automotive industry, which already contributes a massive £71billion a year to our economy. This venture will no doubt secure Sunderland’s future as the UK’s Silicon Valley for electric vehicle innovation and manufacturing."
It follows an announcement from Vauxhall owner Stellantis that it would be closing its Luton van factory and moving its EV operations to its Ellesmere Port factory in Cheshire.
The move was met with widespread criticism from unions, workers and politicians, with 1,100 jobs at risk in Luton, prompting the Labour Government vowing to work with Stellantis to protect jobs.
Find Out More...
The potential tie-up, which also includes Mitsubishi, would create a combined group worth £46billion, despite fears around the future of British manufacturing.
The development adds fresh uncertainty for the Sunderland facility, coming shortly after Nissan's announcement of plans to cut 9,000 jobs globally.
Unite's national officer for automotive Steve Bush confirmed the union would be "monitoring the progress of the merger talks closely and seeking assurances from Nissan about any potential impact on its UK operations."
Do you have a story you'd like to share? Get in touch by emailing [email protected]
The proposed merger would create an automotive powerhouse with annual sales of nearly £182billion, making it the third largest car manufacturer globally. It would also employ 360,000 people across its operations.
Honda aims to finalise the agreement by June, with plans to float a new parent company on the Tokyo Stock Exchange in August.
While presented as a merger, industry watchers note that Honda appears to be taking the lead, with rights to select most directors for the new organisation, including key executives.
The companies argue that a combination is necessary to compete against Tesla and Chinese manufacturers like BYD in the electric vehicle market.
READ MORE: Stellantis confirms major U-turns despite battering UK industry with Luton plant closure and job losses
Nissan's Sunderland facility, Britain's largest car plant, currently employs more than 6,000 people and produces the Qashqai, Juke and Leaf.
However, industry observers suggest the merger could potentially benefit the UK plant, with speculation that Honda might return to British manufacturing using Sunderland's spare capacity.
Reports indicate the plant is currently operating at only half of its capacity, prompting discussions about potential new opportunities.
Industry sources suggest Honda executives have discussed the possibility of producing vehicles at the Sunderland site.
Such a move would mark Honda's return to UK manufacturing, following its departure from Swindon in 2021. The Japanese firm had previously blamed Brexit for closing its Swindon plant, which had employed thousands.
Nissan has not yet indicated whether or how the Sunderland operation might be affected by the merger announcement.
Chancellor Rachel Reeves said the Government is "working to protect jobs" at the Sunderland plant amid the uncertainty.
During a visit to Sunderland, she emphasised how the Government was "not just letting things take their course" and would "fight to keep all the jobs here in Britain".
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It comes just a year after Nissan tripled its investment in electric vehicle production in the UK, with up to £2billion of new investment.
Speaking at the time, former Prime Minister Rishi Sunak said: "Nissan’s investment is a massive vote of confidence in the UK’s automotive industry, which already contributes a massive £71billion a year to our economy. This venture will no doubt secure Sunderland’s future as the UK’s Silicon Valley for electric vehicle innovation and manufacturing."
It follows an announcement from Vauxhall owner Stellantis that it would be closing its Luton van factory and moving its EV operations to its Ellesmere Port factory in Cheshire.
The move was met with widespread criticism from unions, workers and politicians, with 1,100 jobs at risk in Luton, prompting the Labour Government vowing to work with Stellantis to protect jobs.
Find Out More...