Nissan could start making cars for China

Summary

Marketplace Morning Report – "Nissan could start making cars for China" Release Date: May 16, 2025

In this episode of the Marketplace Morning Report, host Liana Byrne delves into pivotal global economic and business developments shaping today's landscape. From Nissan's strategic maneuvers in the automotive industry to the resilience of Europe's stock markets and the enduring allure of the Eurovision Song Contest, the report offers a comprehensive overview of critical issues and trends.

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Nissan's Strategic Partnership with China

Liana Byrne opens the report by discussing a significant shift in the automotive sector: Nissan's potential collaboration with Chinese state-owned company Dong Feng. Broadcasting live from the UK, Byrne introduces Matt Lyons from the BBC World Service to shed light on this development.

Matt Lyons explains, “Nissan's new boss, Ivan Espinosa, says they're open to letting Dong Feng, their Chinese partner, start producing vehicles at the Sunderland plant in the UK” (01:28). This partnership involves sharing the existing Sunderland factory, which currently manufactures models like the Juke and the Leaf.

The rationale behind this move is primarily survival amidst challenging market conditions. Lyons notes, “Nissan's been under pressure in the US and in China, sales are down, competition is fierce and it's just posted a $4.6 billion annual loss” (01:47). By allowing Dong Feng to produce cars in the UK, Nissan aims to cut costs and increase production scale, especially crucial as China leads the electric vehicle (EV) market. This collaboration marks an extension of their existing partnership beyond Chinese borders.

However, the partnership is not without controversy. Lyons points out, “Don Feng is state-owned, so wouldn't that be controversial in the UK?” (02:17). The involvement of a Chinese state entity places UK Prime Minister Keir Starmer in a delicate position. On one hand, the Sunderland factory employs 6,000 workers, and Lyons adds, “Prime Minister Keir Starmer...has been relieved the plan isn't among the seven Nissan shutting across the world” (02:17). On the other hand, Nissan's CEO Espinosa has emphasized the need for government support, particularly concerning energy costs, threatening the plant's future if assistance isn't forthcoming.

This collaboration underscores broader themes of trade, industrial policy, and the competitive dynamics of the global EV race, highlighting the intricate balance between economic survival and geopolitical sensitivities.

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European Markets Rally Amid Economic Uncertainties

Transitioning from the automotive industry, Byrne provides an update on European financial markets, which are experiencing a positive trend. The Stoxx 600 index is on track for its fifth consecutive weekly gain, buoyed by optimistic sentiments surrounding the US economy, a trade truce with China, and robust performance in the healthcare sector. Prominent companies like Novo Nordisk and Novartis have been instrumental in driving this sector upwards by more than 1% (02:56).

In contrast, Byrne shifts focus to Malawi, one of the world's poorest nations, which has recently lost an International Monetary Fund (IMF) program valued at $175 million. The program was terminated after Malawi failed to meet any of the IMF’s review targets established since November. Malawi’s Finance Minister, Simplex Cicciola Banda, voices the country's frustration: “They demanded quite a number of issues that if we could do them now, would put our people in economic deep pains...” (03:46). The IMF's stringent conditions, including demands to adjust fuel prices, cut salaries and wages, and halt hiring, have been deemed too harsh by the Malawian government. The nation now hopes to renegotiate the terms following national elections in September, striving to secure financial stability without inflicting additional strain on its populace.

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Eurovision Song Contest: A Timeless Platform in a Digital Age

The report also explores the enduring appeal of the Eurovision Song Contest, despite the rise of digital platforms and shifting entertainment consumption patterns. Hosted this year in Basel, Switzerland, Eurovision continues to captivate a global audience of over 160 million viewers.

Taya, an Austrian singer who previously performed at Eurovision, reflects on the contest's impact: “If you have a Eurovision song, you can be sure that people are going to hear it” (05:25). Her own satirical song on the competition garnered over 30 million streams, illustrating Eurovision's powerful reach. Returning as a songwriter for Austria's entry, Taya emphasizes the dual benefits of immediate exposure and long-term artist development.

Rob Holley, head of digital for Eurovision, highlights the contest's significance as a launchpad for new artists: “It's like we run 37 different PR campaigns for 37 different pop stars. We're one of the last remaining platforms to launch new artists” (06:11). He notes that Eurovision provides substantial radio and streaming revenue, especially when a song succeeds both on the contest stage and the airwaves.

However, the growing scale of the event introduces financial challenges for participating countries. Alexandra Redde Amiel, head of entertainment at France Television, acknowledges the increasing costs associated with participation, leading to the withdrawal of countries like Bulgaria, North Macedonia, Romania, and Moldova in recent years (06:43). Ahmed Cognac, a Turkish journalist, observes that as Eurovision expands, it becomes more difficult for nations to afford participation, potentially shrinking the competition's diversity.

Despite these challenges, Eurovision remains a global phenomenon, with over 10% of its media coverage originating from the United States. Hit songs from the contest are making their way into international charts, demonstrating Eurovision's sustained relevance and influence in the music industry.

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Conclusion

The Marketplace Morning Report encapsulates a diverse array of topics, from strategic international business decisions and fluctuating financial markets to the cultural significance of global entertainment events. By featuring expert insights and firsthand accounts, the episode provides listeners with a nuanced understanding of the forces shaping today's economic and cultural landscapes.

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Notable Quotes:

• Matt Lyons (01:47): “Nissan's been under pressure in the US and in China, sales are down, competition is fierce and it's just posted a $4.6 billion annual loss.”

• Simplex Cicciola Banda (03:46): “They demanded quite a number of issues that if we could do them now, would put our people in economic deep pains...”

• Taya (05:25): “If you have a Eurovision song, you can be sure that people are going to hear it.”

• Rob Holley (06:11): “It's like we run 37 different PR campaigns for 37 different pop stars. We're one of the last remaining platforms to launch new artists.”

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For more in-depth analysis and updates, tune into the next episode of Marketplace Morning Report.

Transcript

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[Liana Byrne]

China could be building cars right in the heart of Britain. Live from the uk, this is the Marketplace Morning report from the BBC World Service. I'm Liana Byrne. Good morning. So, let's talk about Nissan. The Japanese carmaker has unveiled sweeping cost cutting plans and now says it could share its UK factory with a Chinese state, state owned company. The BBC's Matt Lyons joins us now. What's going on here?

[Matt Lyons]

Well, this is a big shift for Nissan. The company's new boss, Ivan Espinosa, says they're open to letting Dong Feng, their Chinese partner, start producing vehicles at the Sunderland plant in the uk. That's the same factory where Nissan currently makes models like the Juke and the Leaf.

[Liana Byrne]

But why would Nissan consider this? What's in it for them?

[Matt Lyons]

Well, mainly survival. Nissan's been under pressure in the US and in China, sales are down, competition is fierce and it's just posted a $4.6 billion annual loss. Letting Dongfeng build cars in the UK could help cut costs and boost scale, especially as China dominates the EV market. Plus, the two companies already work together in China. So this is about expanding their partnership beyond Chinese borders.

[Liana Byrne]

Yeah, but Matt, Don Feng is state owned, so wouldn't that be controversial in the uk?

[Matt Lyons]

Indeed it is. It puts Prime Minister Keir Starmer in a tricky spot. On the one hand, Sunderland's 6,000 Nissan workers have been relieved the plan isn't among the seven Nissan shutting across the world. But Nissan's boss, Espinosa made it clear the UK government needs to step in with support, especially on energy costs, or else the site's future isn't guaranteed.

[Liana Byrne]

So there's pressure on the government and potentially a political flashpoint with Chinese involvement.

[Matt Lyons]

Exactly that. It's about much more than just cars. It's trade, industrial policy and how far Western economies are willing to go to stay in the competition in the EV race.

[Liana Byrne]

I guess we'll just have to see the BBC's Matt Lyons, thank you so much for joining us on Marketplace.

[Matt Lyons]

Thank you.

[Liana Byrne]

Now let's do the numbers. European markets are heading into the weekend on a high. The Stoxx 600 index is up again, on track for a fifth straight weekly gain thanks to an upbeat mood around the us. China trade truce and healthcare stocks are leading the rally, with big names like Novo Nordisk and Novartis helping push the sector up more than 1%. Now from the markets to Malawi, one of the world's poorest countries. But it's also one which has lost a much needed International Monetary Fund program worth $175 million. The program came to an automatic end this week after Malawi failed to meet any of the IMF's review targets. Since the deal was struck in November. Malawi's finance minister, Simplex Cicciola Banda, says the fund's conditions were simply too harsh.

[Simplex Cicciola Banda]

They demanded quite a number of issues that if we could do them now, would put our people in economic deep pains. We were supposed to adjust fuel prices, which should definitely have a bearing on inflation. We were supposed to actually cut salaries and wages for our employees, which would actually disentivize the civil service we were also supposed not to hire. That would also paralyze the civil service.

[Liana Byrne]

Delivery that was Malawi's Finance minister, Simplex Cicciola Banda. The country hopes to renegotiate after national elections in September. So the Eurovision Song Contest is back this week and it's being held in Switzerland, the country that hosted the very first contest nearly 70 years ago. Since 1956, Eurovision has gone from a quirky song competition petition to a major entertainment juggernaut watched by more than 160 million people around the world. But these days, record labels, streaming platforms, even tick tock creators are all trying to cash in. So how has Eurovision managed to stay relevant in the age of algorithms and short attention spans? The BBC's Daniel Rosny is at this year's contest in Basel to find out.

[Taya]

Two years ago, Austrian singer Taya wrote and performed her own song on the Eurovision Stage, Stage. A satirical take on how songwriters are treated in the music industry, especially in regard to royalties. It's generated more than 30 million streams.

[Rob Holley]

If you have a Eurovision song, you can be sure that people are going to hear it.

[Taya]

Taya is returning this year for Austria, not as the artist, but as the songwriter for jj, who's representing Austria in Switzerland.

[Rob Holley]

A little more money comes in with Eurovision songs. Radio gets definitely more money than streaming. Best case scenario, you write a Eurovision track that is also a radio track.

[Taya]

And gets played ahead of last year's song contest final in Malmus, Sweden. Streaming for the 37 songs had reached 807 million on Spotify.

[Alexandra Redde Amiel]

Hi, I'm Rob Holley, the head of digital for the Eurovision Song Contest.

[Taya]

As other formats like Idol, the Voice or the X Factor report dwindling viewing figures, Eurovision maintains around 160 million each year.

[Alexandra Redde Amiel]

It's the biggest music show on the planet.

[Taya]

For us.

[Alexandra Redde Amiel]

It's like we run 37 different PR campaigns for 37 different prop stars. We're one of the last remaining platforms to launch new artists. The journey of getting to Basel alone is establishing a fan base, which then gives them the longevity after the contest.

[Taya]

Money is being pumped into these artists like never before. But insiders from the broadcasters competing say things are changing. Alexandra Redde Amiel is head of entertainment at France Television.

[Rob Holley]

The game is changing now. It's not just a radio provision. I think it's the big platform ever. You know, before I didn't success to have a famous artist in France and now I have a lot of artists to call me.

[Taya]

There is a cost though, for each broadcaster to participate. Countries like France have a huge budget, but as the contest grows, those countries with financial pressures think twice about taking part. In the past couple of years, Bulgaria, North Macedonia, Romania and Moldova have all pulled out because of finances. Turkey stopped competing in 2020, but viewers there still watch. Ahmed Cognac is a Turkish journalist covering the song contest and believes as the competition gets bigger, it makes it harder for those nations to take part.

[Rob Holley]

I think Eurovision, it's not just only related with the countries, it's about the music. For this, it can be a problem about their motivation, I think.

[Taya]

According to the ebu, the European Broadcasting Union, which puts on the contest, more than 10% of articles and social media posts came from the United States last year, showing the events as global reach beyond Europe. And with hits from the song contest charting in the us, like Duncan Lawrence from the Netherlands with his song Arcade or Armenia's Rosalind Snap, one of the longest running TV shows in the world is still making waves in the music industry, nearly 70 years since it began in Basel, Switzerland. I'm the BBC's Daniel Rosny for Marketplace.

[Liana Byrne]

And I'm Liana Byrne with the Marketplace morning report from the BBC World Service. This Old House has been America's most trusted source for all things DIY and home improvement for decades. And now we're on the radio and on demand.

[Matt Lyons]

I think you're breaking into this wall.

[Liana Byrne]

Regardless.

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I need to go and get some whiskey. I think I would get the whiskey for sure. Subscribe to this Old House radio hour from LAS Studios. Wherever you get your podcasts.