Nissan Losing Hope In the UK, Moves X-Trail Production To Japan

Why Brexit uncertainty means companies plan for the worst

"The letter, written in October 2016, shows Nissan and the UK Government's continued desire to support investment in the UK and maintain Sunderland as one of Nissan's manufacturing hubs in Europe", the company said on Monday. However, things have changed since then.

Nissan said it took the decision on the X-Trail for business reasons, with continued uncertainty surrounding future UK-European Union relations "not helping".

The company says falling demand for diesel cars in Europe had forced it to invest in other technologies as the segment is hit by levies and crackdowns, warning two months before Brexit that uncertainty is also making plans harder.

Nissan has chose to move assembly of X-Trail cars to its global production hub on the island of Kyushu in southern Japan, reversing a decision made in October 2016.

Many Japanese companies had long seen Britain as the gateway into Europe, after being encouraged to open factories in the country by former prime minister Margaret Thatcher but Brexit has thrown that into doubt, prompting consternation in Tokyo.

However, Nissan's decision not to build its large X-Trail SUV in Britain is just the latest in a series of blows that have left the industry facing a crisis.

The up to 80 million pounds of support on skills, research and development and innovation was contingent on the new Qashqai and X-Trail models being built in Britain, Clark wrote.

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The report adds that Herrera is keen on extending his stay at Old Trafford despite interest from his former club Athletic Bilbao. In training, he is told all the time: 'Paul, we see you happy!' And after he laughs".

Nissangate continues with the news that as previously suspected, the government had offered Nissan a huge pile of cash to manufacture its new auto in the UK. "Our workforce in Sunderland has our full confidence, and will continue to benefit from the investment planned for Juke and Qashqai", de Ficchy said.

The model was planned for production at the company's plant in Sunderland, but will now be moved to Kyushu, Japan. Declines have been steepest for diesels such as the X-Trail.

But that decision was partly overturned this weekend, when Sky News revealed the firm had chose to build the X-Trail in Japan instead amid a collapse in diesel sales in Europe and continued Brexit uncertainty.

It has emerged that the United Kingdom government had agreed to up to £80 million in support to Nissan should the project go ahead.

Nissan's announcement has added to worries for local parts makers.

The North East England Chamber of Commerce has responded to the news that vehicle manufacturer Nissan has made a decision to scrap plans to build one of its models in Sunderland.

Less than two months before Britain's scheduled withdrawal date, the government does not have an approved agreement on the rules, conditions and terms that will replace the 45 years of frictionless trade that came with being an European Union member.

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