Nissan pulls plug on new model amid Brexit concern

Mindy Sparks
February 7, 2019

The firm will still build its new Juke and Qashqai models at the factory which opened in 1986 after then prime minister Margaret Thatcher successfully encouraged Japanese companies to pick the country as a gateway into Europe. Addressing to an initial abandoning of X-Trail productions in Britain less than two months before a chaotic Brexit, the Sky report stated, "Precise details of Nissan's impending announcement were unclear this weekend, but sources said it was likely to initially involve abandoning the X-Trail production plans which had been announced in the autumn of 2016".

The auto company recently cancelled its plans to manufacture the new X-Trail SUV at its Sunderland plant (as well as at the Kyushu plant in Japan).

Nissan wants Labour to work towards agreeing a Brexit deal with Theresa May, the business secretary claimed after the carmaker scaled back planned United Kingdom investment amid uncertainty over European Union withdrawal.

Merkel said questions about the backstop could be discussed in the so-called political agreement that accompanies the Brexit deal, adding: "We need to show creativity, we need to listen to each other".

"It will be a critical priority of our negotiation to support United Kingdom auto manufacturers and ensure that their ability to export to and from the European Union is not adversely affected by the UK's future relationship with the European Union".

"They will be invited to re-submit an application in the light of the changed investments that they are making".

It is another sign of the decline of British automotive manufacturing, on which Fleet Europe reported last week.

But on Sunday, Nissan, which operates Britain's single-biggest auto factory where it built approximately 30 per cent of the country's 1.52 million cars produced a year ago, said it was reversing that decision.

But speaking alongside Japanese Prime Minister Shinzo Abe in Tokyo, she said: "We want to do everything to avoid a no-deal, because that would increase the uncertainty".

Vehicle 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.

However, earlier this week it confirmed a decision to move production to Japan.

"They also pointed out what they've said consistently since 2016, that a risk of a no-deal Brexit is a source of damaging uncertainty". "As long as we have a current commitment to safeguard the current competitiveness we will be fine".

Other reports by Iphone Fresh

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