Nissan announces closure of Barcelona factory

Japanese car manufacturer Nissan on Thursday confirmed that it has made the "very difficult" decision to close its factory in Barcelona in northeast Spain.

The factory, which has been running at 30 percent of its capacity since the end of 2019, currently employs 3,000 people and generates an estimated 15,000-20,000 jobs directly and indirectly.

The Spanish government has lamented the decision, which it said was confirmed in a phone call from Makoto Uchida, president and CEO of Nissan, to Minister of Industry, Trade and Tourism Reyes Maroto on Thursday morning.

The Ministry of Industry insists that the plant remains viable, noting that it would be more beneficial for Nissan to "invest (in the plant), rather than assuming the cost of the closure, which could be more than 1,000 million euros (US$1,100 million)."

"The Barcelona factory also has a strategic character as halting production in Spain would also mean abandoning the European Union, with the consequent cost to its reputation in a market of over 500 million inhabitants," added the Ministry.

Spain's Minister of Economy and Business Nadia Calvino explained that Spain had "proposed a process of negotiations" and repeated that the "investment needed in the plant is lower than the cost of its closure."

"We will continue to work with the company, the Generalitat (Catalan regional authority), the Barcelona City Hall and unions, to see how we can channel this process or find an alternative solution.

Ada Colau, the Mayor of Barcelona, also lamented the decision, saying "Nissan has received economic aid for many years and has a responsibility to its workers and the area."