Published: Tue, February 05, 2019
Worldwide | By Stella Potter

Nissan scraps plan to build new X-Trail model in Britain

Nissan scraps plan to build new X-Trail model in Britain

While the control of emissions in the European Union is a key factor in Nissan retaining production of the X-Trail in Japan, the company has referred to "Brexit uncertainty" as a contributory reason for pulling its investment in Britain.

Union representatives are seeking assurances from Nissan that the automaker will continue to invest in its United Kingdom factory even after the company canceled plans to build the next X-Trail in Britain, citing Brexit concerns and falling diesel sales.

"Nissan has increased its investments in new powertrains and technology for its future European vehicles", the firm said.

The government said Nissan's decision was "a blow to the sector" but that no jobs would go as a result. The Qashqai is the best-selling British-made vehicle worldwide and the Sunderland plant exports more than 80% of its Qashqai output. "I will be asking for the government to intervene, and will stay in close contact with the company itself", she said.

Vince Cable, leader of the opposition Liberal Democrats, told Sky News the prime minister must stop "playing chicken" with Parliament and the European Union by threatening a no-deal Brexit.

The carmaker's planned investment in the next-generation Juke and Qashqai models, which was also announced in 2016, was unaffected, Nissan said on Sunday.

The company blamed wider industry pressures but added that Brexit "uncertainty" was not helping it to plan for the future.

In a report that was published by Sky News, the executives of the auto company are scheduled to make the said announcement on Monday.

It follows ongoing calls from the Society of Motor Manufacturers and Traders (SMMT) for the Government to avoid a no-deal Brexit.

Meanwhile, pro-EU and pro-Brexit politicians traded allegations about whether Nissan's decision not to build a new SUV in northern England was the latest sign of Brexit-induced economic damage.

The company, which is headquartered in Belfast, saw its stocks skyrocket by nearly 11 percent on Monday after executives said full-year results will be better than expected.

X-Trails will now be exported to Europe under the recently struck EU-Japan trade deal which allows cars to be sold here under low tariffs.

He said Unite remains "seriously concerned" that "the apprenticeships and additional jobs that come with future investment and which this community so desperately needs will be lost".

Nissan Motor on January 2 said it would use a plant in Kyushu, Japan to build the next generation of its X-Trail sports utility vehicles for the European market.

Nissan's announcement comes a week after Jaguar Land Rover said it plans on cutting its global workforce by 4,500.

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