Nissan pulls plug on new model amid Brexit concern


The letter also acknowledged the impact of Brexit on the company's plans, and pledged that it would be "a critical priority of our negotiation to support United Kingdom auto manufacturers and ensure that their ability to export to and from the European Union is not adversely affected by the UK's future relationship with the EU". "To support this we are taking advantage of our global assets, and with the X-Trial already manufactured in Japan, we can reduce our upfront investment costs".

The newspaper said that Greg Clark, the business secretary, was told by the vehicle giant that the switch of production from Sunderland to Japan was now "not negotiable".

As Nissan make a U-turn and say sayonara to building the X-trail in Sunderland, the government is left deeply embarrassed.

Business Secretary Greg Clark told a parliamentary hearing on Nissan's decision that company executives told him of "the need for us to come together and to resolve the question of our future trading relationship with the EU".

The Business Secretary, Greg Clark, said that advice should be listened to as he confirmed that the Japanese vehicle giant has abandoned plans to build the X trail model at its Sunderland plant.

Other carmakers, including Jaguar Land Rover, Toyota and Vauxhall, have expressed fears of disruption to their supply chains in the event of a no Brexit deal of Britain leaving the European Union, the BBC reported.

Nissan announced at the weekend that it had chosen to build its new X-Trail model in Japan, rather than at its Sunderland plant.

The supply chain for the Japanese company sustains almost 30,000 jobs in the north east of England and is at the core of a new £500m taxpayer-subsidised manufacturing park next to the Nissan plant created to boost the flow of components.

"They also pointed out what they've said consistently since 2016, that a risk of a no-deal Brexit is a source of damaging uncertainty".

Nissan has committed to the manufacture in Sunderland of the current Qashqai, Leaf and Juke models and the new Qashqai from 2020.

And the head of Britain's top business lobby group warned the same month that the country's auto industry could be wiped out by Brexit.

Sunderland City Council leader Coun Graeme Miller said: "While this decision is not expected to have an immediate impact on jobs at Nissan, anything that affects longer term investment in the plant is obviously a cause for concern".

"What we should have been saying to Nissan was thank you", he said.