Close Car Factory in Barcelona, Nissan Must Pay USD 2 Billion
Thursday, June 4, 2020
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It is not as easy to close a factory as closing a shop. Because the cost of closing a factory can be very expensive. Do not believe? Look at what happened to Nissan Motor Co.
On May 28, Nissan announced the closure of their car assembly plant in Barcelona, Spain. The decision is quite heavy because no less than three thousand people will lose their jobs.
Besides that, the cost of closing the factory is not cheap and has to go through complicated methods.
1. Nissan Motor estimates that the cost of closing its factory in Barcelona will reach up to 1.5 billion Euros
Nissan Motor Co. has calculated the cost of closing their factory in Barcelona, which is no less than 1.5 billion euros.
This figure is far from the initial estimate of 700-800 million Euros. Because the cost of termination of employment in Spain is not cheap.
"1.5 billion euros is more realistic. It's not easy to dismantle the factory, "said a Nissan official.
2. Some employees have worked for more than 20 years
The Bacelona-based newspaper, La Vanguardia, said Nissan had to pay at least 600 million Euros for dismissed workers and 310 million Euros for fiscal costs.
La Vanguardia also mentioned that many of the employees had worked more than 20 years for the Nissan factory in Barcelona. So the cost of termination of employment is very expensive.
3. It took seven years for Nissan to recover
Nissan itself estimates it will take at least seven years for them to normalize their finances, and even then by making a number of savings, including closing the factory in Barcelona.