Nissan breaks pledge to make its new SUV in post-Brexit Britain
IT WAS heralded as the flagship post-Brexit agreement between the Government and the car industry.
But bosses at Japanese car maker Nissan are set to renege on their promise to build a new car model in North-East England, in a blow to the Prime Minister’s Brexit plans.
The agreement to manufacture new Qashqai and X-Trail SUVs in Sunderland was made only months after the referendum in 2016 and was hailed by Theresa May as ‘fantastic news’.
She said at the time: ‘This vote of confidence shows that Britain is open for business and that we remain an outward-looking, 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.
Precise details are expected to be made tomorrow, according to Sky News, and will prompt questions over the car giant’s future commitment to the UK.
Bridget Phillipson, Labour MP for Houghton and Sunderland South, said: ‘If confirmed, this would be deeply troubling news for the North-East economy. So many jobs depend on Nissan and the Brexit uncertainty has done huge harm to the automotive sector.’
The decision comes weeks after Jaguar Land Rover and Ford both said they will axe nearly 5,000 jobs over fears of a No Deal Brexit.
Manufacturers are warning Ministers that leaving the EU without a deal could destroy the industry. World Trade Organisation tariffs for car exports to the Continent are at 10 per cent. The secretive deal with Nissan was struck two years ago, with Ministers refusing to disclose 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 currently in a Japanese prison cell.
The shamed ex-CEO is facing allegations of tax evasion and financial irregularities, with current bosses turning their backs on him.
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 several hundred new jobs will now be on hold.
The Nissan factory already produces the electric Leaf car, and other models including the Juke and QX30, with 440,000 vehicles rolling off production lines a year.
The X-Trail is currently made only for the Japanese market but, without a free trade agreement between Britain and the EU, any plans Nissan may have to ship the X-Trail to Europe could be binned.
Unite union spokesman Steve Turner said: ‘We will be meeting the company on Monday morning. Our priority is to ensure investment commitments are upheld.’
The car industry has been struggling in recent months, especially as diesel vehicles fall out of favour with drivers. But more concerning is that investment has collapsed in the past 12 months in the UK, according to the Society of Motor Manufacturers and Traders.
Chief executive Mike Hawes said: ‘With fewer than 60 days before we leave the EU and the risk of crashing out without a deal looking increasingly real, UK Automotive is on red alert.’
Nissan declined to comment.