UK government promised Nissan $100 million after Brexit vote

06 February, 2019, 10:38 | Author: Dwayne Harmon
  • The failure of Britain's government so far to negotiate a smooth exit plan from the European Union has made car manufacturers less willing to use Britain as a European manufacturing centre

"To support this we are taking advantage of our global assets, and with the X-Trial already manufactured in Japan, we can reduce our upfront investment costs".

The up to £80 million of support for skills, research and development, and innovation, was contingent on the new Qashqai and X-Trail models being built in Britain, Clark wrote.

The North East England Chamber of Commerce has responded to the news that auto manufacturer Nissan has made a decision to scrap plans to build one of its models in Sunderland.

A senior Nissan boss blasted Brexit "uncertainty" as he confirmed that the company had scrapped plans to build the X-Trail 4x4 at its Sunderland plant, but said that the decision had been taken for "business reasons".

Government may "review" a £60m funding package created to secure production of the new Nissan X-Trail at the manufacturer's Sunderland plant after plans were revealed to build the SUV in Japan.

In a letter from business minister Greg Clark to then Nissan boss Carlos Ghosn, the British government also promised to protect the vehicle sector as Britain leaves the European Union.

A UK-based spokesman for Nissan declined to comment. Its is Britain's largest auto factory.

"From a Brexit perspective, the one thing it highlights is the uncertainty".

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Although it also stressed that other future models planned for Nissan Sunderland plant - the next-generation Juke and Qashqai - remain unaffected.

However, professor Christian Stadler at Warwick Business School warned that Nissan could shift even more production in the event of no deal.

German Chancellor Angela Merkel also said the agreement couldn't be renegotiated, although questions surrounding border arrangements could be addressed in a declaration on the future relationship between the European Union and Britain.

Nissan Motor on January 2 said it would use a plant in Kyushu, Japan to build the next generation of its X-Trail sports utility vehicles for the European market.

He added: "In a call from Japan yesterday a senior Nissan executive had this to say to me - "please pass on the view to your opposition that they need to meet in a way that forms a deal".

Auto maker Nissan has scrapped plans to build its new X-Trail 4x4 in Britain, saying it had taken the decision to consolidate production in Japan and warning two months before Brexit that uncertainty was making it harder to plan for the future.

Meanwhile, Clark revealed the firm would need to re-apply for government funding after deciding not to build new vehicle models at its United Kingdom plan.



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