Nissan's Sunderland car plant sets new European productivity standards

• The UK has the two most productive plants in Europe according to World Markets Research Centre's annual European Automotive Productivity Index

London-28 June: World Markets Automotive, a division of World Markets Research Centre, today issues its annual European Automotive Productivity Index. Nissan's Sunderland plant once again topped the industry list for Europe, almost 20% ahead of the rest of the field.

Productivity at the Nissan plant climbed again in 2000, increasing the number of vehicles per employee by over 7%. The improvement at Nissan was achieved as the company succeeded in slightly reducing its total workforce while, at the same time, adding a third model, the Almera. Output increased from 271,157 in 1999 to 327,701 in 2000. The ratio of 101 cars per employee is approaching the European productivity record set at Sunderland in 1998.

The achievement followed a period of uncertainty for the plant. Renault, which had acquired a stake in Nissan, recently considered transferring production of Nissan models from Sunderland to its existing plant at Flins in France.

The company claimed it achieved higher levels of output by using a young, well-motivated workforce, Nissan's lean Japanese manufacturing model and the established practice of continuous improvement, or 'kaizen'.

* Toyota Burnaston, UK was the second most productive plant with an output of 86 cars per employee, highlighting the dominance of the Japanese car manufacturers. Earlier this year Toyota announced its intention of moving production of the 3-door Corolla from Japan to the UK. This would lead to a 50,000-unit increase in output in 2002.

* Renault topped the manufacturers' league with six out of the top 15 most productive plants surveyed, while Spanish car workers also showed high productivity with five of the twelve top plants surveyed.

* Honda's Swindon plant slipped from number two in the 1999 index to number 26 in 2000, with production falling from 83 cars per employee to 55. The company attributes this partly to disruption following the full model change of the Civic 5-door and to the introduction of the CR-V. Prospects for the plant have also been undermined by the company's decision to repatriate production of the Accord back to Japan, and by cancellation of an earlier plan for UK-build of the new small Logo/City range. Honda will, however, add a second assembly line at Swindon from September this year.

* Based on the plants surveyed, productivity in Europe rose from a plant average of 52.6 cars per employee in 1997 to a record 60.1 in 1999. However, in 2000 the car market weakened and manufacturers were slow to reduce their manufacturing headcount. This caused a slight decline to an average of 58.3 cars per employee. Forecasts of a further 5% drop in Europe's car market this year could put productivity under increased pressure.

Ian Robertson of World Markets Research Centre says: "The report again sees a UK plant competing with the top global performers. A record of 165 cars per employee was set by Daewoo's Changwon plant in South Korea in 1998. When the Global Index is issued later this year we will be able to see how Nissan, Sunderland performs against all other plants. What this year's index also shows is that intense competition is accelerating the adoption of new working practices to boost quality and efficiency."

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World Markets Automotive Productivity Index for Europe - Results for 2000

    Manufacturer                           Models         Total      Equivalent 
               Plant         Country     Produced       workforce  workforce* 
                                                                              
  Nissan       Sunderland   UK           Micra,         4,594      3,262      
                                         Almera,                              
                                         Primera                              
  Toyota       Burnaston    UK           Avensis,       2,769      1,985      
                                         Corolla                              
  Ford         Saarlouis    Germany      Focus          6,415      4,715      
  GM           Eisenach     Germany      Opel Corsa,    1,971      1,782      
                                         Astra                                
  Ford         Valencia     Spain        Focus, Ka,     5,057      4,460      
                                         Fiesta                               
  GM           Antwerp      Belgium      Opel Astra     5,328      4,288      
  Renault      Valladolid   Spain        Clio           4,873      3,634      
  Volkswagen   Pamplona     Spain        Polo           5,301      4,900      
  Fiat         Melfi        Italy        New Punto Y    5,352      4,779      
  Renault      Novo Mesto   Slovenia     Clio           2,057      1,688      
  Renault      Palencia     Spain        Megane         3,247      3,604      
  SEAT         Martorell    Spain        Arosa,         8,450      7,300      
                                         Ibiza,                               
                                         Cordoba/Vario                        
                                         , Leon, Polo                         
                                         Classic,                             
                                         Caddy                                
  Renault      Flins        France       Twingo, Clio   7,126      5,392      
  Renault      Douai        France       Megane,        7,018      5,952      
                                         Scenic                               
  Renault      Maubeuge     France       Kangoo,        3,870      3,660      
                                         Express                              
  PSA          Aulnay       France       Peugeot 106,   6,948      6,257      
                                         Citroen Saxo                         
  GM           Zaragoza     Spain        Corsa, Tigra   8,700      6,000      
  GM           Bochum       Germany      Astra,         8,675      5,680      
                                         Zafira                               
  Ford         Dagenham     UK           Ford Fiesta,   2,621      2,369      
                                         Courier                              
                                         vans, Kombi,                         
                                         Mazda 121                            
  Fiat         Termini      Italy        New Punto      2,329      2,508      
               Im.                                                            
  GM           Ellesmere    UK           Astra          4,700      2,823      
               Port                                                           
  PSA          Mulhouse     France       Peugeot 206    12,754     7,156      
  Fiat         Tychy        Poland       Seicento,      3,816      4,106      
                                         Palio,                               
                                         Siena, Uno                           
  Fiat         Mirafiori    Italy        Panda, New     7,540      6,605      
                                         Punto,                               
                                         Marea,                               
                                         Multipla                             
  PSA          Vigo         Spain        Citroen        9,889      7,815      
                                         Xsara,                               
                                         Picasso,                             
                                         Berlingo,                            
                                         C15, Peugeot                         
                                         Partner                              
  Honda        Swindon      UK           Accord,        2,594      1,338      
                                         Civic, CR-V                          
  PSA          Ryton        UK           206            3,205      3,407      
  Peugeot                                                                     
  Daimler      Rastatt      Germany      A-class        4,700      3,740      
  Chrysler                                                                    
  MG Rover     Longbridge   UK           Rover 25,      3,608      3,443      
  (1)                                    Rover 45,                            
                                         Rover 75,                            
                                         MGF                                  
  GM           Luton        UK           Vauxhall       3,200      2,292      
                                         Vectra                               
  Volkswagen   Wolfsburg    Germany      Lupo, Polo,    23,950     15,000     
                                         Bora, Golf                           
  Volvo        Ghent        Belgium      Volvo V70,     3,597      2,735      
                                         Volvo S60                            
  Fiat (2)     Cassino      Italy        Bravo,         5,767      5,015      
                                         Brava, Marea                         
  PSA          Poissy       France       Peugeot 206,   9,219      6,376      
                                         306                                  
  Volvo (3)    Born         Netherlands  Volvo S40,     5,809      3,951      
                                         Volvo V40                            
  Volvo        Torslanda    Sweden       Volvo V70,     4,212      3,348      
                                         Volvo Cross                          
                                         Country,                             
                                         Volvo S80                            
  PSA          Madrid       Spain        306, Xsara     4,421      4,185      
  Peugeot                                                                     
  PSA          Mangualde    Portugal     Partner,       1,455      1,233      
  Peugeot                                Berlingo,                            
                                         Saxo                                 
  PSA          Rennes       France       Citroen        9,635      6,995      
                                         Xsara,                               
                                         Xantia, XM,                          
                                         C5                                   
  GM           Russelsheim  Germany      Vectra         6,743      5,609      
                                         Omega                                
                                         Catera                               
  Skoda        Mlada        Czech        Felicia,       17,929     7,709      
               Boleslav     Republic     Fabia,                               
                                         Octavia                              
  PSA          Sochaux      France       Peugeot 406,   17,785     7,999      
                                         307, 607                             
  Renault      Sandouville  France       Laguna,        6,685      6,069      
                                         Safrane                              
  Volkswagen   Emden        Germany      Passat         9,991      8,273      

World Markets Automotive Productivity Index for Europe - Results for 2000 cont.

Actual Vehicles per Employee

                                                                              
  Manufacturer                            Produced  1997   1998   1999   2000 
               Plant          Country     in 2000                             
  Nissan       Sunderland   UK            327,701   98     105    94     101  
  Toyota       Burnaston    UK            171,338   58     72     81     86   
  Ford         Saarlouis    Germany       383,893   59     59     77     81   
  GM           Eisenach     Germany       145,200   77     76     82     81   
  Ford         Valencia     Spain         343,794   57     58     73     77   
  GM           Antwerp      Belgium       329,300   n/a    n/a    63     77   
  Renault      Valladolid   Spain         280,667   59     64     71     77   
  Volkswagen   Pamplona     Spain         376,164   77     76     60     77   
  Fiat         Melfi        Italy         364,882   70     73     70     76   
  Renault      Novo Mesto   Slovenia      122,919   n/a    n/a    n/a    73   
  Renault      Palencia     Spain         255,621   n/a    n/a    69     71   
  SEAT         Martorell    Spain         516,146   69     69     66     71   
  Renault      Flins        France        379,722   57     59     80     70   
  Renault      Douai        France        399,933   61     68     68     67   
  Renault      Maubeuge     France        245,648   n/a    56     63     67   
  PSA          Aulnay       France        401,370   51     58     62     64   
  GM           Zaragoza     Spain         373,600   67     67     69     62   
  GM           Bochum       Germany       350,000   n/a    n/a    n/a    62   
  Ford         Dagenham     UK            148,000   62     61     60     62   
  Fiat         Termini      Italy         153,265   n/a    n/a    n/a    61   
               Im.                                                            
  GM           Ellesmere    UK            169,200   n/a    n/a    n/a    60   
               Port                                                           
  PSA          Mulhouse     France        425,764   55     58     61     59   
  Fiat         Tychy        Poland        241,651   n/a    n/a    n/a    59   
  Fiat         Mirafiori    Italy         379,733   54     61     58     57   
  PSA          Vigo         Spain         437,162   35     52     52     56   
  Honda        Swindon      UK            74,017    62     64     83     55   
  PSA          Ryton        UK            187,797   n/a    n/a    n/a    55   
  Peugeot                                                                     
  Daimler      Rastatt      Germany       200,000   n/a    n/a    48     53   
  Chrysler                                                                    
  MG Rover     Longbridge   UK            178,557   34     31     n/a    52   
  (1)                                                                         
  GM           Luton        UK            112,900   39     43     47     49   
  Volkswagen   Wolfsburg    Germany       686,240   39     42     50     46   
  Volvo        Ghent        Belgium       122,200   n/a    n/a    n/a    45   
  Fiat (2)     Cassino      Italy         219,096   39     40     44     See  
                                                                         note 
  PSA          Poissy       France        282,985   36     45     43     44   
  Volvo (3)    Born         Netherlands   156,336   36     50     n/a    40   
  Volvo        Torslanda    Sweden        133,680   n/a    n/a    n/a    40   
  PSA          Madrid       Spain         166,272   n/a    n/a    n/a    40   
  Peugeot                                                                     
  PSA          Mangualde    Portugal      49,753    n/a    n/a    n/a    40   
  Peugeot                                                                     
  PSA          Rennes       France        245,860   n/a    41     39     35   
  GM           Russelsheim  Germany       189,400   n/a    n/a    n/a    34   
                                                                              
  Skoda        Mlada        Czech         264,592   33     35     32     34   
               Boleslav     Republic                                          
  PSA          Sochaux      France        250,861   25     31     31     34   
  Renault      Sandouville  France        194,831   36     41     40     32   
                                                                              
  Volkswagen   Emden        Germany       225,693   28     37     29     27   

Source: World Markets Research Centre (WMRC)

Notes:

Due to abnormal operating environment in 2000, including 3 months build cessation of Rover 75, 2000 results are derived from 2001 operating plan, not 2000 actuals.

2000 omitted due to retooling in preparation for Stilo production.

As from 1 April 2001, the plant is wholly owned by Mitsubishi.

*Please see section on Methodology for explanation of Equivalent Workforce.

Additional Note: Ford data and VW Group 2000 data derived from WMRC estimates. Historical data sources, EIU and CSFB.

Analysis prepared with assistance from the Centre for Automotive Industry Research at the University of Wales.

• Methodology:

The same method of rating plants has been followed as that employed by the Economist Intelligence Unit in its established annual productivity programme, with operations of the press shops, body welding shops, paint plants and trim and final assembly being used as the basis on which productivity is measured. The methodology is described in detail below.

• Summary of methodology:

* The productivity ratio is based on the actual number of vehicles produced in the year, and not on plant capacity.

* It is also based on the operations considered to be essential for car manufacturing and therefore included are: press shop: pressing of sheet metal panels; body-in-white shop: fabrication of sub-assemblies and body-in-white from pressings; paint plant: pre-treatment, anti-corrosion treatment and painting of bodies; trim and final assembly: all trim and final assembly operations; and rectification.

* Where there is no press shop, an estimate is made based on typical industry performance.

* Operations omitted, because these are generally performed by suppliers, include: bumper moulding and painting; and seat manufacture.

* In arriving at the "equivalent number of employees" in the plant the following personnel are included: all direct and indirect labour in the departments mentioned in point two above; all management in the plant; and all personnel involved in management administration, such as personnel and production control, quality control and materials handling.

* Omitted are any sales personnel, or personnel involved in training staff from other plants or who are unrelated to manufacture, and departments such as purchasing.

SOURCE World Market Research Centre