Published: Thu, February 07, 2019
Research | By Raquel Erickson

Nissan cancels plans to build the new X-Trail auto in UK

Nissan cancels plans to build the new X-Trail auto in UK

Nissan's Sunderland factory is the British vehicle industry in microcosm, although the plant itself is not so small. However, Nissan had once said production of the X-Trail in Sunderland would create hundreds of additional jobs at the complex.

The Department for Business, Energy and Industrial Strategy was prepared to offer Japanese auto manufacturer Nissan £80m of support to build its new X-Trail model at the firm's Sunderland plant, it has been revealed.

Nissan, the Japanese automaker giant would be pulling themselves back from manufacturing the next models of their X-Trail Sports utility vehicle in United Kingdom, ahead of a boorish Brexit, which could potentially hurt the manufacturing cost and jeopardize the future of the vehicles, aimed at exporting in to the European Union nations, a Sky News report revealed on Saturday, the 2nd of February, 2019.

Esther McVey insisted that Nissan's decision was nothing to do with Brexit, but Nissan's Europe boss later confirmed that Brexit uncertainty had played a part. The current government framework agreement envisages leaving the Single Market and the Customs Union., Nissan's former CEO Carlos Ghosn hinted that he would seek compensation if vehicle exports to Europe were subject to tariffs.

We now know, after an embarrassing admission by Business Secretary Greg Clark, that Nissan had been offered a package of government perks worth up to £80m. This includes the production of the Nissan Qashqai, the company's best-selling crossover in Europe.

"The continued uncertainty around the UK's future relationship with the European Union is not helping companies like ours to plan for the future", de Ficchy said.

Nissan employs 7,000 people at the Sunderland plant - its largest in Europe - which has produced cars since 1986.

But speaking alongside Japanese Prime Minister Shinzo Abe in Tokyo, she said: "We want to do everything to avoid a no-deal, because that would increase the uncertainty".

"In any circumstance, the government will ensure that the United Kingdom continues to be one of the most competitive locations for automotive and other advanced manufacturing within Europe and globally, including sites such as Sunderland".

"They also pointed out what they've said consistently since 2016, that a risk of a no-deal Brexit is a source of damaging uncertainty".

Following the announcement, Clark said it would be "a blow to the (country's automotive) sector and the region".

Sunday's news comes after the British automotive industry saw investment plunge past year amid mounting concern about the impact of a hard Brexit.

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