Nissan promised £80m to build cars in Sunderland

05 February, 2019, 00:43 | Author: Gregory Stephens
  • Nissan scraps plan to build new model in Britain

"None of it is conducive to encouraging business investment in this country", she added.

Bridget Phillipson, the labor minister MP for Houghton and Sunderland South, commented before the move was confirmed.

The carmaker committed in October 2016 - four months after the Brexit referendum - to switching production of the X-Trail at the plant, following assurance from the Government of the continued competitiveness of the United Kingdom operation, and said it would increase its investment in the plant.

The Japanese company refused to shed light on the situation on Saturday and remained tight lipped.

"What we should have been saying to Nissan was thank you", he said.

Nissan's decision not build its new X-Trail vehicle in Sunderland means that 741 additional jobs will no longer be created, Business Secretary Greg Clark has said.

The leader of Sunderland City Council has called on the Government to do "everything in its power" to secure the future of the United Kingdom automotive industry, following the news that Nissan will be moving production of one of its new vehicles to Japan.

He said Unite is "working hard to establish the truth behind current speculation", adding that they will be meeting the company on Monday to establish the facts.

"While I'm pleased the decision taken in 2016 to build the Qashqai and secure the Sunderland plant is unchanged, it's deeply disappointing to me and to the workforce that the extra jobs that would have come from the X-Trail will no longer be available".

Speaking to the BBC on Sunday, Javid said border enforcement officials told him now available technological systems mean there is no need for checkpoints and other infrastructure on the U.K.'s land border with Ireland after Brexit.

But the pledge depended on continued production of the Qashqai and X-Trail models at the carmaker's Sunderland plant, the Financial Times reported.

Current production in Sunderland also includes the Nissan LEAF, which is Europe's best-selling electric auto.

X-Trails will now be exported to Europe under the recently struck EU-Japan trade deal which allows cars to be sold here under low tariffs.

According to Sky News, Nissan's decision is not expected to have a major impact on jobs. And the head of Britain's top business lobby group warned the same month that the country's auto industry could be wiped out by Brexit.

Production of diesel cars was down by 22 per cent to 561,000 past year.

The decision not to build the auto at a site that employs more than 7,000 people and supports another 28,000 supplier jobs comes as a particular blow after Prime Minister Theresa May's government had previously gone out on a limb to safeguard Nissan's investment in the United Kingdom, making private assurances that led to accusations of back-door deals.

"The company has confirmed that no jobs will be lost".



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