More car trouble for May as Nissan breaks promise to produce model in post-Brexit UK
IT WAS heralded as the flagship post-Brexit agreement between the British government and the car industry.
But bosses at Japanese carmaker Nissan are set to renege on their promise to build a new car model in England, in a major blow to Theresa May’s Brexit plans. The agreement to make Qashqai and X-Trail SUVs in Sunderland was made just months after the 2016 referendum and was hailed by Mrs May as ‘fantastic news’.
She added at the time: ‘This vote of confidence shows that Britain is open for business and that we remain an outwardlooking, world-leading nation.’
Today those comments will ring hollow to 7,000 Sunderland workers, with Nissan set to scrap plans to build the X-Trail there. The news will prompt questions over the car giant’s future commitment to Britain.
Last night, British Labour MP Bridget Phillipson, said: ‘If confirmed, this would be deeply troubling news for the northeast economy… Brexit uncertainty has done huge harm to the automotive sector.’ The decision comes just weeks after Jaguar Land Rover and Ford both said they will axe nearly 5,000 jobs over fears of a no-deal Brexit. Manufacturers have warned that leaving the EU without a deal could destroy the industry. World Trade Organisation tariffs for car exports to the Continent are at 10%. The deal with Nissan was struck in 2016, with politicians refusing to reveal details beyond insisting it did not involve financial incentives for the company. However, it was made with the company’s former chairman Carlos Ghosn, who is holed up in a Japanese prison cell, facing allegations of tax evasion and financial irregularities.
Scrapping the X-Trail plans is not expected to have a major impact on current staff at the plant, but it is likely to mean that the creation of several hundred new jobs will be put on hold.
The X-Trail is currently made only for the Japanese market, but, without a free trade agreement between Britain and the EU, plans to ship the X-Trail to Europe could be binned.