Nissan Motor Co (7201) said on Tuesday that it would discontinue production of cylinder heads for Renault at its facility in Sunderland, northern England, from 2024.
“From early 2024, Nissan Sunderland Plant will cease production of cylinder heads on site. We do not expect this to result in job losses, and are working with staff as we redeploy them to other parts of the business,” the auto maker said in a statement.
Nearly 250 people are employed by Nissan in relation with cylinder head production for Renault’s petrol vehicles.
“Following a study about the economics of cylinder head suppliers, Renault Group has found another supplier that will start working with us from 2024,” a spokesperson for Renault was quoted as saying by Reuters.
Industry analysts believe the end of Renault’s contract with Nissan will probably lead to further questions about the future of the alliance between the two auto makers.
The shares of Nissan Motor Co (7201) closed higher for the fifth time in the past ten trading sessions in Tokyo on Wednesday. The stock went up 0.13% (JPY 0.7) to JPY 528.0, after touching an intraday high at JPY 534.7. The latter has been a price level not seen since August 22nd (JPY 536.8).
The shares of Nissan Motor Co have retreated 5.00% so far in 2022, following another 0.75% drop in 2021.