Nissan's Choice For New X-Trail Car is Japan instead of UK
07 February, 2019, 14:10 | Author: Emilio Conner
Nissan's decision to scrap plans to build its next-generation X-Trail model in northern England is "very disappointing", Prime Minister Theresa May's spokesman said on Monday.
"While the decision was made on broader business grounds, Nissan commented on the need for us to come together and to resolve the question of our future trading relationship with the EU".
Clark, for his part, reportedly described the news as a "blow to the sector and the region", but stressed that the automaker had confirmed that no jobs would be lost.
The carmaker's planned investment in the next-generation Juke and Qashqai models, which was also announced in 2016, was unaffected, the firm said on Sunday.
United Kingdom promised about 80 million pounds ($104 million) in support to Nissan in 2016 as part of a significant investment by the Japanese automaker in its British vehicle plant just four months after the Brexit vote, the Financial Times reported on Monday.
Nissan, which builds 30 percent of the U.K's 1.52 million cars at its factory, the country's biggest auto plant, exports the vast majority of the vehicles to European Union countries and, like the rest of the industry, is anxious about tariffs if there is a no-deal Brexit.
"What we should have been saying to Nissan was thank you", he said.
Unite the Union, the UK's second largest labor union which also represents Sunderland workers, was disheartened at Nissan's decision.
The future models planned for the Sunderland plant, the next-generation Juke and Qashqai, are now unaffected.
Nissan will be forced to reapply for £61m of taxpayer support after backtracking on a promise to built its X-Trail SUV in Sunderland.
The factory in Sunderland, which was opened to great fanfare by former Prime Minister Margaret Thatcher in 1986, is Britain's largest with 442,000 cars built a year ago - nearly a third of total production in the country. "Our workforce in Sunderland has our full confidence, and will continue to benefit from the investment planned for Juke and Qashqai". However, as production ramps up over the years and older models are phased out, jobs invariably move to the alternate facility and the original factory suffers, experts have warned. With 52 days to go, the UK's tax service effectively admitted that there is no infrastructure in place to facilitate time-efficient duties, while Britain's Business Secretary admitted on February 5 that a "no deal" scenario would be "ruinous" for the economy.
Mr Matthews said the cancellation was likely to have repercussions for employees throughout the supply chain, who may have to cancel purchasing plans such as moving house or buying a new vehicle. Diesel cars dropped from a 55% share of the European market - the UK, Germany, Italy, France, Spain - in 2014, to 36% in 2017.
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