Nissan to build new models in UK despite Brexit

Nissan confirms it will build new Qashqai and the X-Trail SUV at its Sunderland plant following government “support and assurances”.

Nissan will build two new car models at its Sunderland plant, a vote of confidence in the UK following the Brexit vote, and strong encouragment for other carmakers with pending investment decisions will continue to locate their work in Britain.

The Japanese carmaker, second only to Jaguar Land Rover as the largest auto manufacturer in the country, had been in doubt following the EU referendum.

However, Nissan has said  it would produce the new model of its Qashqai SUV at the plant, as well as the X-Trail SUV, which is currently made in Japan.

Labour leader Jeremy Corbyn said the government must make public any deals struck with the firm. However, Business Secretary Greg Clark said there was “no question of financial compensation” for Nissan.

The announcement comes as economic growth in the three months after Brexit increased by 0.5% – slower that the 0.7% in the previous quarter but higher than analysts’ estimates of about 0.3%.

The decision will secure 7,000 jobs and is the first major development in the car industry since the Brexit vote.

Carlos Ghosn, Nissans Chief Executive said that he welcomed Prime Minister Theresa May’s “commitment to the automotive industry in Britain”. Last month, he warned that Nissan might not invest in the Sunderland plant unless the government guaranteed compensation related to any new trade tariffs resulting from Brexit.

He added: “The support and assurances of the UK government enabled us to decide that the next-generation Qashqai and X-Trail will be produced at Sunderland”.

Mrs May described the announcement as “fantastic news”, adding: “This vote of confidence shows Britain is open for business.”

Business Secretary Greg Clark said: “The fact Nissan have not only made a long-term commitment to build the next generation Qashqai and X-Trail at Sunderland, but decided to upgrade their factory to a super-plant, manufacturing over 600,000 cars a year, is proof of the strength of the sector.”

It is the first time that the X-Trail Model will be made outside of Japan.

A senior Nissan Europe executive, Colin Lawther, said the company had received “no special deal”, despite a political row where Downing Street had to deny that it had offered the Japanese company a sweetheart deal.

 

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