Decision ‘is a ripple in the road’

Business experts have expressed their concerns over Nissan’s decision to scrap plans to build the new X-Trail model at its Sunderland plant.

Henri Murison, Director of the Northern Powerhouse Partnership, said: “I think on behalf of business leaders and political leaders across the north of England we’re frankly very concerned about what has happened here at Nissan.

“This shows a significant lack of confidence from the parent company in the future prospects of the UK economy and for the future prospects of building cars here in Sunderland.

“Although it is heartening that there is no immediate threat to jobs here, I think we’ve got to realise that if we do proceed towards a disorderly Brexit, if we proceed towards a no deal that’s managed, all of those things will take us out of the customs union and will probably mean the end of car making, eventually, here in Sunderland.

“And with this being absolutely integral not just to the Sunderland economy, but to the economy across the North East and the wider north of England, we cannot allow that to happen.”

Paul Butler, CEO of the North East Automotive Alliance, added: “Clearly it is disappointing news.

“However, the world is a very different place than it was in October 2016.

“The decision to move production of the X-Trail back to Japan is disappointing, but based on sound business decisions to optimise their investments in new technologies and powertrain to support the next generation vehicles in Sunderland.

“The plant will still remain the largest car plant in the UK by some margin, thanks to the highly successful new LEAF, Juke and Qashqai models.”

Professor Lawrence Bellamy, Academic Dean, Faculty of Business, Law and Tourism at Sunderland University, said: “The change to Japan – or to other areas – is not unusual therefore, as markets and their requirements naturally shift and manufacturers respond accordingly.

“In isolation it’s a ripple in the road.

“If this occurred in conjunction with a number of other similar decisions then that would be more concerning. As this time however it most usefully focuses attention on the job in hand.”