Workers at Nissan’s Sunderland factory today took the biggest jobs blow yet of the current crisis in the British car industry when 1,200 positions were cut.

The toll includes 800 permanent jobs and 400 temporary contracts which will not now be renewed after this month.

Until now car companies have largely tried to avert large job losses, keeping staff on shortened hours and implementing lengthy shutdown periods.

The cuts, which are out of a workforce of more than 5,000, emerge as the car industry is pleading for government aid but as doubts seem to be growing over whether any will be delivered.

The car industry has told the Government that it is facing a national emergency and unions have called for a £13 billion aid package.

Trevor Mann, Nissan’s senior vice president for European manufacturing, said: “Like all manufacturers, Sunderland Plant is currently operating in extraordinary circumstances not of our making. It is essential we take the right action now to ensure we are in a strong and viable position once business conditions return to normal.”

Unite, the biggest union, called the Nissan announcement “devastating news” and urged action from the Government.

Derek Simpson, joint general secretary of Unite, said: “I hope the lessons of Rover have been learnt. In 2005, thousands lost their jobs, most of them were forced to abandon manufacturing and take a pay cut just to stay in work. It is imperative that we protect our skills base otherwise Britain will come out of recession considerably weaker.”

Lord Mandelson, the Business Secretary, said today that he expects there will be more job cuts in Britain’s car industry “in view of the very sharp drop in demand for the cars”.

But he said: “The measures that will be taken by the companies will be to ensure their futures.”

Lord Mandelson said the Government “stands fully behind” Nissan’s decision. He said: “Nissan is a very robust company indeed and this plant in Sunderland is a very resilient plant indeed. It is modern, it produces excellent cars, it is a huge exporter.

“Nissan have taken this decision today in order to secure its future success. The Government stands fully behind that.”

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