Nissan has announced that the next-generation X-Trail for the European market will be produced in Japan and not in Sunderland, as announced in 2016.
Whilst a number of factors are thought to be behind the decision, not least the slump in diesel sales, Nissan Europe chairman Gianluca de Ficchy said that the UK’s impending exit from the EU was also a factor. “The continued uncertainty around the UK’s future relationship with the EU is not helping companies like ours to plan for the future,” he said.
Nissan had previously pledged to produce the new model at its Sunderland plant following assurances from the UK government, a decision hailed at the time by Theresa May as a “vote of confidence [that] shows Britain is open for business and that we remain an outward-looking, world-leading nation.”
Whist the company claims that existing production and the almost 7000 jobs at the plant are safe, the decision to cancel X-trail production at the site – which was expected to create hundreds of new jobs – has caused a great deal of concern. “We remain seriously concerned though that the apprenticeships and additional jobs that come with future investment and which this community so desperately needs will be lost,” said Unite’s Steve Bush.
Local MP for Sunderland central Julie Elliot, described the decision as “devastating news” for the city and said in a statement “we cannot deny the inevitable role that Brexit has played in this.”
Meanwhile, talking to the Financial Times, the government’s business secretary Greg Clarke described Nissan’s decision as a “warning sign” of the damage that would be caused by a no-deal Brexit.
Nissan’s decision follows December’s ratification of a free-trade deal between the EU and Japan, which has contributed to concerns that Japanese firms will reconsider their investments in the UK once it leaves the EU.
>we cannot deny the inevitable role that Brexit has played in this>
Actually, we can. The (utterly pro-Remain) Financial Times explained that they were going to build a diesel version in Sunderland, but due to trouble meeting emission standards and the slump in demand, they decided to go petrol only. Petrol engines would have to be transported from Japan, so they decided it was best to just have production there.
I doubt this MP invested even five minutes of investigation time before pronouncing the Brexit as the cause.
Quite so, for the first 24hrs the BBC also reported this news item as a Brexit issue until a journalist actually mentioned that the new model was a diesel. Nissan themselves ‘admitted that Brexit uncertainty didn’t help’ which sounds to me like they were asked a leading question.
Seems a bit strange to ship petrol engines around the world – surely easier to just ship the engines.
It’s true that Brexit is only one of a number of issues facing the car industry, but in this case, it would seem to be the major issue. This vehicle is for the European market. Japan has a FTA with the EU, whereas the UK might not.
Perhaps it’s not such a bad thing! It’s about time we saw cars becoming a reasonable size again, small, light, efficient and electric – looking towards the green future we’re going to have to transition to sooner rather than later. No-one wants a diesel anymore, and it’s not going to be long before no-one wants a petrol vehicle either!
Agree in principle – but two factors are pushing in the opposite direction; the ‘arms race’ for who comes off best in a collision and the state of the surface condition of roads. As roads increasingly resemble a ploughed field, so will grow the demand for 4×4’s, with the tyres and suspension to cope …
I agree that for a large percentage of car ownership small/light/efficient is the way to go but suggest until we are able to effectively increase the energy density of electric vehicles diesel still has a place. My work involves traveling sometimes not inconsiderable distances to repair first line medical equipment. In my current hybrid I cannot complete the journey on one tank of fuel and electric is completely out of the question. My next vehicle will be a Euro 6 powered 4×4 because it is what I need. The day I see an electric tractor ploughing a field I will know the technology has arrived. We do need this but I suggest diesel still has a part to play for now.
The quote from Nissan Europe’s Chairman was taken from a letter to Nissan staff and was not a response to a leading question.
And politicians wonder why they are held in such low esteem. The sophistry that was rampant in the Westminster fun palace last week has become tedious. The full implications of Brexit will probably not manifest themselves for years. By which time Nissan may well be a fond memory in an area that voted so heavily to leave the EU.
We have 650 MPs earning a min of £77700 a year to £50 million + who cannot do anything constructive to sort Brexit out , all in business do not have a clue what will happen. No wonder JLR & Nissan are trying to play safe, we all want certainty it is damaging to the country.
The country has been let down badly by our elected officers who repeatedly have failed in their tasks. It is not good enough. I feel for all companies who have not a clue were this takes us.
Yes, all those politicians who told us Leaving the EU would be a breeze should be held to account. Of course they never will because the electorate who voted Leave will never admit they were wrong.
..and of course those who predicted this sort of mess will never be told “I’m sorry, actually you were right”. We, the people, get the politicians we deserve.
Due to a EU-Japan trade deal Nissan cars will not be subject to tariffs. Could that possibly have influenced the decision.
I think the tariff elimination will be staged; it will be a number of years before it becomes zero. Not 100% certain on that though.
The EU offered the UK an FTA last March, No. 10 rejected it. Now it can’t even agree a withdrawal agreement, never mind a trade deal.
actual quote was “While we have taken this decision for business reasons, the continued uncertainty around the UK’s future relationship with the EU is not helping companies like ours to plan for the future.” https://uk.nissannews.com/en-GB/releases/update-to-production-plan-for-next-generation-x-trail#
Worth reading the full press release as it notes that future Juke, Qashqai and Leaf are unaffected. Automotive is a global business that dislikes uncertainty!
Do we need more 4X4 diesel cars on the roads in our overcrowded country? Aren’t we supposed to be reducing our pollution levels!?
!?
Whether or not we do I’d rather they were built in Sunderland and not imported from Japan. Wouldn’t you?
Simple answer to that. Buy something that was built here and not an import. If we all bought Jag Fe’s and not BMW 3 series then we wouldn’t even be worrying about this! “Keep your country in business by keeping your business in your country!”
Yes, wouldn’t it be great if everyone bought British. Of course that doesn’t happen and anyway many of those vehicles would have been built for export so we’ll see a hit on our balance of trade figures.
Good news for Japan though.
Again.
I tend to agree in part, so many major cities are choked with some if not the worst street levels of pollution in Europe, the lack of forward thinking in solving mass transit within cities from central government is overwhelmingly to blame and I cannot see it changing in the near future.
No the lemmings will keep buying bigger cars, then they’ll all want trucks, then they’ll be totally surprised and alarmed when they get charged £100 a day in an attempt to drive them off the road in the upcoming climate emergency… no-one is forward thinking or caring about their environment any more.
In the same way we could have a thriving economy if everyone bought British and shunned cheap imports, but they want a cheap bargain NOW, even if it breaks after a short time and gets thrown away.
Once Nissan start production of the new version, you’ll find that jobs will start to drop in Sunderland as they won’t need them anymore. Then the next model change and so on. Eventually there may not be any factory at all. All foreign companies have been given zero or cheap business rates over the last forty years to foreign investors of these companies to get the country going with jobs for people and some taxes into the coffers. And all those people who voted to leave did not think once that this is what the companies they work for would do! But once they loose the EU trade jump from the UK they will leave!
The Germans poisoned the diesel well, which may be a good thing longer term but in the short term is not good for diesel car sales…. The FTA is interesting as it negates the reasons for having manufacturing plant in Europe moving forward but does help indigenous European manufactures, generally in main land Europe, export to Japan…. Given the UK trade deficit in manufactured goods with the EU we should not enter into or even discuss a FTA in manufactured goods until there is a free market in services…. Sadly this requires a primary school understanding of the issues, significantly above the political class….