Nissan seeks assurances over taxes and tariffs in event of ‘hard’ Brexit
NISSAN has urged Britain to pledge compensation for the creation of any tax barriers due to Brexit or face losing a potential new investment in the country’s biggest car plant.
The warning has come from Carlos Ghosn, chief executive of the Japanese auto manufacturer, whose remarks show growing concern among global car manufacturers that Britain could be heading towards a so-called “hard Brexit,” which would leave them paying tariffs to export UK-assembled cars to EU markets.
Nissan, which builds around a third of Britain’s total car output at its plant in Sunderland, is due to decide early next year on where to build its next Qashqai people carrier.
“If I need to make an investment in the next few months and I can’t wait until the end of Brexit, then I have to make a deal with the UK Government,” explained Mr Ghosn at the Paris auto show.
“You can have commitments of compensation in case you have something negative,” he said.
“If there are tax barriers being established on cars, you have to have a commitment for carmakers who export to Europe that there is some kind of compensation.”
The Nissan chief’s ultimatum echoes concerns from fellow Japanese carmaker Toyota, which said the imposition of duties as part of a Brexit deal would make running its UK plant “very, very tough.”
Around 814,000 people in Britain depend on the country’s overwhelmingly foreignowned car industry for jobs.
Meantime, a monthly survey, carried out on behalf of the European Commission, shows consumer confidence has rebounded to pre-Brexit levels as shoppers appear to shrug off fears about the economy.