Nissan factory fears growing
REPORTS Japanese car-maker Nissan will abandon plans to build its X-Trail model at its Sunderland plant are “deeply troubling”, an MP has said.
According to Sky News, the company will confirm the move to cancel plans to build the new version of the SUV on Monday, just 53 days before Britain is scheduled to leave the EU.
Nissan had voiced concerns about Brexit before finally committing to build the new Qashqai and X-Trail models in its North East factory in October 2016, four months after the EU referendum.
Labour MP for Houghton and Sunderland South, Bridget Phillipson, tweeted: “If confirmed, this would represent deeply troubling news for the north east economy.
“So many jobs and livelihoods depend on Nissan’s success.”
The Japanese company refused to shed light on the situation. A spokesman said: “Nissan does not comment on rumour or speculation.”
In a statement posted on Twitter, Labour Sunderland Central MP Julie Elliott said “the downturn in the diesel market is what is being blamed” for the decision.
“I will be doing everything I can to protect the jobs at the Sunderland plant. I will be asking for the Government to intervene, and will stay in close contact with the company itself,” she said.
“But we cannot deny the inevitable role that Brexit plays here. The constant uncertainty, the chaotic government. None of it is conducive to encouraging business investment in this country.”
She said she would update constituents with information once she finds out more, and that “we must await official announcement from Nissan for the plans”.
At the time, the decision to build its next-generation Qashqai and add production of the new X-Trail model at the site had eased concerns about the future of the North East factory after Brexit.
It secured thousands of jobs in the Brexit-backing city, but prompted a volley of questions over whether a so-called “sweetheart deal” between the car-maker and the Government had been struck to protect the manufacturer from any post-Brexit EU tariff wall.
Ministers strongly denied any financial incentives were offered.