Sunderland, England — Nissan is exploring a partnership with its Chinese state-owned collaborator, Dongfeng, as the automaker undergoes significant restructuring in its global operations. The Japanese manufacturer, which has a substantial workforce in the UK, indicated it is willing to integrate Dongfeng more closely into its production network.

This week, Nissan announced plans to cut approximately 11,000 jobs and close seven factories as it grapples with persistent challenges in several key markets, notably the United States and China. However, the company did not specify the locations impacted by these layoffs. In a recent conference, Nissan’s senior leadership reaffirmed the commitment to its Sunderland facility, noting that new car models are set to be launched there shortly.

The current job reductions follow a previous announcement of 9,000 layoffs made last November, highlighting the depth of Nissan’s ongoing cost-cutting efforts. Together, these reductions comprise about 15% of the company’s global workforce, which totals approximately 133,500 employees. Nissan aims to decrease its production output by one-fifth as part of this initiative.

Despite having partnered with Dongfeng for over two decades, Nissan has struggled to gain market share in China, the largest automotive market worldwide. Intense competition has led to declining prices and challenging conditions for Nissan’s own brands. Currently, the company and Dongfeng collaborate to manufacture vehicles in Wuhan, China.

The pressure on Nissan has been compounded by a series of leadership transitions and unsuccessful merger negotiations with rival Honda. Talks of a multi-billion-dollar merger collapsed earlier this year when both companies failed to reach an agreement. In the wake of those negotiations, Makoto Uchida stepped down as CEO, with Ivan Espinosa succeeding him. Espinosa previously served as chief planning officer and was involved in the company’s motorsport division.

Nissan’s financial situation has also worsened, with the company reporting an annual loss of 670 billion yen, equivalent to approximately $4.6 billion. The ongoing trade tariffs, particularly those imposed during the Trump administration, have further strained the company’s resources.

In a positive development, Nissan’s battery partner, AESC, recently secured a £1 billion investment from the UK government for a new facility in Sunderland. This plant will produce batteries for popular electric models like the Juke and Leaf. During a visit to the site, Chancellor of the Exchequer Rachel Reeves highlighted the project’s potential to create valuable, high-quality jobs in the region.

As Nissan navigates these turbulent waters, the integration of Dongfeng into its global operations may provide new opportunities for collaboration and growth, paving the way for a more resilient future amidst ongoing industry challenges.