Nissan’s big Brexit break-up
Nissan prepares to pull plug on production of X-Trails in Sunderland
Nissan is set to abandon plans to build X-Trail SUVs in Sunderland over Brexit fears.
Senior managers are expected to conf irm the shock move tomorrow – 53 days before the UK is scheduled to leave the European Union.
Nissan committed to building new models at its factory in the north-east of England in October 2016, after negotiations with the Government despite serious concerns about Brexit.
The company, part-owned by Renault, is keen to avoid export tariffs when the UK leaves the single market.
There were claims Chancellor Phi lip Hammond struck a “sweetheart deal” with the car-maker to convince it to stay.
It will be a huge blow for the Tories if the incentives offered have not been enough to convince executives that the damage caused by Brexit can be mitigated.
The Japanese firm has refused to clarify its X-Trail plans. A spokesman said: “Nissan does not c omment on rumour or speculation.”
W he n the X-Trail investment was announced more than two years ago, the firm said hundreds of jobs would be created at the plant.
Work on the Qashqai – which makes up the majority of Nissan Sunderland’s work – is not expected to be affected.
Su nderland, which voted in favour of leaving the EU by 61 per cent to 39 per cent, has been home to a Nissan plant since 1986, with 7000 people producing 2000 cars a day.
Labour MP for Houghton and Sunderland South, Bridget Phillipson, last night tweeted: “If confirmed, this would represent deeply troubling news for the north-east economy.
“So many jobs and l ivelihoods depend on Nissan’s success.”
Sharon Hodgson, whose Washington and Sunderland West constituency includes the Nissan plant, said she was “extremely concerned”.
She added: “I know many of my constituents will also be very worried. I will do all that I can to protect jobs in Washington and Sunderland.
“On Monday, I will be speaking to Government ministers to raise this as a matter of urgency.”
Car industry body the Society of Motor Manufacturers and Traders last week said a No-Deal Brexit would be “catastrophic” for the sector.
The industry is seen as being vulnerable to disruption because of the reliance on a system in which parts, often from Europe, arrive “just-intime” to be used.
A No-Deal Brexit would also lead to major instant rises in tar i f fs under World Trade Organisation rules.
Steve Turner, assistant general secretary of the Unite union, said the rumours were “disturbing” and “will cause the workforce to have a very anxious weekend”.
The reported decision is likely to raise fresh concerns about the economic impact of Brexit.
It will be seen as another clear indication that global companies are reluctant to make further investment in the UK when it will mean being shut out of major international markets.
Former Ukip leader Nigel Farage previously insisted Nissan
was “not going anywhere” after it said a hard Brexit could have serious implications for the site.
Meanwhile, Scottish ministers warned of “confusion, anxiety and insecurity” for universities and students over Brexit.
In the event of no deal, a European Temporary Leave to Remain lasting three years has been proposed by the UK Government for EU nationals.
But the majority of degrees in Scotland are four-year courses, which Higher Education Minister Richard Lochhead and Migration Minister Ben Macpherson say the UK Government has “ignored”.
They signed a letter to UK Immigration Minister Caroline Nokes, saying the time limit will put Scottish universities “at a competitive d isadvantage with regards to undergraduate recruitment”.
The letter states that because the criteria for extension haven’t been published, the policy “is likely to discourage EU citizens applying to Scottish universities as there is no guarantee they will be able to complete courses”.
The letter adds: “All EU students undertaking non- standard length courses will be seriously disadvantaged” and called for a No-Deal Brexit to be ruled out and the date of leaving the EU – March 29 – to be put back.
It is estimated that about nine per cent of Scotland’s university students and 27 per cent of ful l- time research staff are EU nationals.
At a People’s Vote ral ly in Edinburgh last week, Glasgow University principal Sir Anton Muscatelli said Brexit would impact on the Erasmus exchange programme which enables students to continue their studies at universities across the EU.
A UK Government spokesman defended the stance of Prime Minister Theresa May, insisting that leaving the EU with a deal “remains the Government’s top priority”.
He suggested that if the UK was to leave the EU without a deal, students coming here from the European Economic Area or Switzerland who wish to stay in the UK for longer than three years can ask to stay on.
He said: “They can apply for an immigration status under the study routes of the new skil ls- based immigration system at the end of the period of temporary leave to remain.
“Alternatively, they will be able to apply under Tier 4 of the existing system for a student visa to cover the full length of their course.”
It came as hardline Brexiteer MP Jacob Rees-Mogg said he was willing to accept a “short” delay to leaving the EU to f inalise legislation around a deal.
It follows several Government ministers raising the same prospect in recent days.
Rees- Mogg, who chairs the European Research Group of Tory MPs, said: “If the agreement were made but a little parliamentary time were needed, as long as the second reading had taken place, a short extension is not impossible.”
This is deeply troubling. So many jobs and livelihoods depend on Nissan’s success