Nissan in warning on effects of a hard Brexit

NISSAN HAS warned that a hard Brexit will have “serious implications” for the carmaker’s Sunderland factory.

The Japanese firm, which employs about 8,000 in the UK, said that Britain crashing out of the EU’s single market and customs union into World Trading Organisation rules would be detrimental to its operation.

Nissan uses its UK operations to export to the EU and benefits from being able to trade freely without customs checks or extra tariffs while Britain is a full member.

The company said in a statement: “As a sudden change from those rules to the rules of the WTO will have serious implications for British industry, we urge UK and EU negotiators to work collaboratively towards an orderly balanced Brexit that will continue to encourage mutually beneficial trade. Since 1986, the UK has been a production base for Nissan in Europe. Our Britishbased research and development and design teams support the development of products made in Sunderland, specifically for the European market.”

Several high profile Conservatives, including Jacob Rees-Mogg, have come out in favour of Britain adhering to WTO rules after Brexit day.

“Frictionless trade has enabled the growth that has seen our Sunderland plant become the biggest factory in the history of the UK car industry, exporting more than half of its production to the EU,” Nissan added.

Japanese firms have been among the most vocal when expressing fears over Brexit, with Panasonic announcing plans to shift its European headquarters out of the UK. There are 879 Japanese companies employing around 142,000 staff in the UK.