No-deal Brexit ‘would jeopardise future of Nissan’s European arm’

A NO-deal Brexit leading to 10% tariffs on exports would make Nissan’s European business model unsustainable, the company’s chairman has warned.

Speaking at the UK’s biggest car plant in Sunderland, where production is due to start on the latest model of the Juke, Gianluca de Ficchy said the business was prepared for Brexit scenarios but could not plan in the longterm.

The Wearside plant has built 10 million “high-quality” vehicles in its history and the Nissan Europe chairman praised its workforce.

He said a decision to stop night shifts was not linked to Brexit but was due to the need to optimise production of the three models built there — the popular Qashqai, the Leaf electric vehicle and the new Juke.

Two-thirds of the components for the Juke come from the EU and 70% of production is aimed at the continent.

“It is important to have some clear discussions about the future and about the situation in which we have to operate, which we have with Brexit,” Mr de Ficchy said. “There has been many speculations about the current uncertainty. I wish to clarify the Nissan position about that.

“We have been working together in Europe to define all the risks associated with Brexit coming in and we think we are all really well prepared.

“I think from an operational point of view we have worked in order to prepare for all the different scenarios.”

He admitted Nissan was unable to make plans for the future due to uncertainty about where models will be built.

Mr de Ficchy also said there was uncertainty over if there would be a deal or a no-deal and what no-deal would represent. He said: “If a no-deal scenario means the sudden application of WTO tariffs, we know in that case our business model won’t be sustainable in the future.

“Our industry works with lower margins and if we are in a situation in which tomorrow we have to apply 10% export duties to 70% of our production, the entire business model for Nissan Europe will be in jeopardy. That’s the reason why we continue to work with all scenarios.”

Mr de Ficchy said there may be some off-setting of tariffs on imported components and exported cars, but there were too many variables to plan for.

He said the quality of the work done at the Sunderland plant since it started production in 1986 meant the business still planned to manufacture there, with £100m invested in Juke production.

He said: “We know the workforce is concerned about that situation (Brexit).

“We are also concerned. That’s the reason we are here — to express our concerns.”

He said he had no specific message to the Prime Minister but that the business required a clear understanding of the Brexit decision.