Nissan Pulls Model Production From UK Amidst Brexit Concerns

Nissan Sunderland plant

However, today, Nissan's Europe division boss wrote to Sunderland factory staff confirming the news and telling them that the model will continue to be made in Japan. 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".

Nissan said it will only produce the X-Trail in Japan.

It made the pledge, which had been expeced to create an additional 741 United Kingdom jobs, after business secretary Greg Clark set out commitments of support for the firm after Brexit.

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.

But the letter, which the government refused to publish on multiple occasions, had prompted accusations that ministers were doing secretive deals with firms, prompting some Brexiteers to question whether pledges made might keep the United Kingdom tied to EU mechanisms such as the customs union.

The Nissan boss said that the announcement would be "interpreted by a lot of people as a decision related to Brexit" and that "uncertainty around the UK's future relationship with the European Union is not helping companies like ours to plan for the future". The current government framework agreement envisages leaving the Single Market and the Customs Union., Nissan's former CEO Carlos Ghosn hinted that he would seek compensation if auto exports to Europe were subject to tariffs. This includes the production of the Nissan Qashqai, the company's best-selling crossover in Europe.

The department revealed the package of support it offered Nissan after the firm announced yesterday that it would reverse its pledge to build the vehicle at the plant.

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".

Automotive manufacturers in the United Kingdom with diesel cars that fail to meet the latest emission standards now face a number of hefty levies.

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

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