AUTONEWS

Brexit effect: Nissan cuts model production in the UK

The climate of uncertainty over the relationship between Britain and the European Union (EU), due to Brexit, has made a new victim. Nissan does not risk and announced that it will not produce the next X-Trail in Sunderland. The factory in question is the largest in England, where it produces one every three cars in the United Kingdom.
The announcement of the Japanese brand was echoed politically. Of course, Sunderland's manufacturing facilities guarantee 6,700 jobs. Then, because the builder accepted in June, from the British Government, £ 61 million - an aid that would be part of a broader support package, which could even reach £ 80 million (EUR 92 million).
These funds were agreed in 2016 as a way of assuaging motor manufacturers of their post-Brexit competitiveness. However, according to CNN, to receive government aid, Nissan would have to allocate production of two models to Sunderland, with the agreement being part of the Qashqai and X-Trail. The Japanese manufacturer cAgora who agreed to receive 76% of that support, Nissan surprised by revealing that the next generation of the largest of its SUVs will not leave the UK. Hence, in Parliament, Business Secretary Greg Clark, the man who in 2016 conducted negotiations with then-president of Nissan, Carlos Ghosn (detained since November 19), described as "disappointing" the decision of the Japanese manufacturer. Quoted by the BBC, the official says however that Nissan "has ensured that no job will be lost," adding that the brand remains committed to production in Sunderland. Then the Quashqai, the Leaf and the Juke will continue to come out.
The president of Nissan Europe, Gianluca de Ficchy, justified the move of the next generation of the X-Trail to Japan invoking "commercial reasons". But he assumes that "the continuing uncertainty surrounding the UK-EU relationship is not helping companies like ours to plan for the future."To provide the European market, the X-Trail will be produced in Kyushu, Japan, where the Japanese brand believes it will be able to lower production costs, he said.