The VDL Nedcar factory in the Netherlands, which builds the Mini Countryman and Convertible, has announced it is cutting down to one shift and making redundancies as the current-generation models are phased out.
Around 1800 employees across the production and administrative departments will be made redundant as a result of the switch to a sole day shift from 1 November 2023.
Production of the Countryman will move to a BMW site in Leipzig, Germany, for the next-generation model and the new Convertible will be built at Mini’s home plant in Oxford.
VDL said in a statement that it could not rule out further job cuts from 1 March 2024, when its contract with BMW ends. However, it is seeking new “substantial” contracts to keep the plant running.
VDL added that its agreement with BMW to build cars until 2030 was terminated as car sales and production volumes slumped amid the Covid-19 pandemic. Nedcar produced a total of 174,097 cars in 2019, but only 125,666 a year later.
VDL Nedcar managing director John van Soerland said: “After BMW's termination of the 2030 contract, we have fought extremely hard for the right connection through car production.
“We have not succeeded so far. Ultimately – due to turbulent conditions in the car market – time has proved too short to keep the entire population employed. We regret this, and to our employees who will lose their jobs, we are sorry.”
The official statement added that employees “obviously deserve a good safety net” of double the legally required compensation, plus a €7500 (£6400) ‘finish with pride’ bonus.
The Dutch factory, established in 1967, will now look to become a manufacturer with a broader remit – still offering contract production for vehicles, but also battery pack assembly and sustainable coatings for brake discs, among other avenues.
It remains to be seen whether any European car manufacturers could outsource production to VDL Nedcar, or if any incoming Chinese brands will take the opportunity to localise production of the cars they will sell here. BYD, for example, has previously spoken of its openness to setting up a European production site, earlier mentioning it was in talks over 15 potential locations in the region.
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