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."
- About World Markets Automotive:
World Markets Automotive is the latest industry-specific intelligence service from World Markets Research Centre (WMRC plc).
- World Markets Automotive provides:
* in-depth reports on the automotive industry in over 50 countries;
* company profiles on more than 60 light vehicle and heavy truck manufacturers and 100 component manufacturers;
* same-day analysis on developments and events as they occur;
* a global database of vehicle production and sales statistics (since 1990); and
* industry forecasts for the next three years. World Markets Research Centre provides business-critical analysis and information to businesses, governments and multinational organisations. Its portfolio of industry-specific services includes World Markets Telecoms and World Markets Energy. These are underpinned by the World Markets Country Analysis service that covers 185 countries.
WMRC subscribers are found in 35 countries and across 33 industry sectors and include companies from all aspects of the automotive industry. www.wmrc.com
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)
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.
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
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