Government Admits Nissan Was Offered A Massive Brexit Handout

07 February, 2019, 04:27 | Author: Darnell Taylor
  • Sunderland leader calls for action to protect automotive sector

The British government disclosed it Monday, a day after Nissan said it has canceled plans to produce its next-generation X-Trail SUV at the Sunderland plant in northeastern England.

The company's official statement said that in order to support heavy investment in new technology and equipment at its Sunderland operations (where the Juke, Qashqai and Leaf models will continue to be produced) it has made a decision to consolidate the X-Trail's production in its Japanese facility.

Business Secretary Greg Clark told a parliamentary hearing on Nissan's decision that company executives told him of "the need for us to come together and to resolve the question of our future trading relationship with the EU".

Nissan, the Japanese automaker giant would be pulling themselves back from manufacturing the next models of their X-Trail Sports utility vehicle in United Kingdom, ahead of a boorish Brexit, which could potentially hurt the manufacturing cost and jeopardize the future of the vehicles, aimed at exporting in to the European Union nations, a Sky News report revealed on Saturday, the 2nd of February, 2019.

The Department for International Trade said its priority was to ensure there was no disruption to UK-Japanese trade after Brexit, but that it would then seek to go further than the deal signed by Brussels. Nissan aims to optimize its investments in Europe by consolidating X-Trail production in Kyushu, the production hub for the global model, the company added. The company also said it is increasing spending on new powertrains for future European vehicles.

The British government says that if Nissan wants their financial support, the company will have to reapply based on a new investment strategy.

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

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".

Mr Ramsbotham said: "The automotive sector in this country is vitally important and needs to be protected".

The so-called backstop is meant to ensure there is no return to a hard border with Ireland, but Brexit supporters fear it will keep Britain tied to the EU's customs rules.

"Our workforce in Sunderland has our full confidence, and will continue to benefit from the investment planned for Juke and Qashqai", de Ficchy said.

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