Nissan could close its Sunderland factory if the UK leaves the European Union without a trade deal, according to reports in the Financial Times.
The newspaper, citing three people with knowledge of the matter, reports a no-deal Brexit could prompt the Japanese firm to stop making the Qashqai SUV at the site – which could ultimately lead to the closure of the plant.
In November 2016, Nissan pledged to build the hugely popular Qashqai in the UK, after then-chairman Carlos Ghosn received assurances from then-prime minister Theresa May that the firm’s operations would be protected from the impact of Brexit – but the agreement was reportedly contingent on a ‘soft’ Brexit with an EU trade deal.
The FT claims that, under a global review Nissan has since undertaken, the Sunderland plant could be downsized or even closed if a no-deal Brexit makes it uncompetitive to ship cars from the site to the EU. Currently, Nissan also makes the Juke and Leaf models at Sunderland.
In a statement issued to Autocar, Nissan said: “While we don’t comment on speculative scenarios, our plans for Qashqai production in Sunderland have not changed.”
But the firm did warn that a no-deal Brexit could have a serious impact on British-based industry.
It added: “Since 1986, the UK has been a production base for Nissan in Europe. Our British-based R&D and design teams support the development of products made in Sunderland, specifically for the European market.
“Frictionless trade has enabled the growth that has seen our Sunderland plant become the biggest factory in the history of the UK car industry, exporting more than half of its production to the EU.
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TStag
Cue a Brexiteers to say this
Cue a Brexiteers to say this is nothing to do with Brexit and everything to do with the Japanese EU FTA. Problem with that is Sunderland is the most efficient Nissan plant I. The world so still would be an odd decision if not Brexit related
scotty5
Brain dead
Simple answer - which EU country did Honda move to? Which EU country did Nissan decide to build the X-Trail after they said it's not coming to EU?
If a car manufacturer pulls out the EU altogether, how the xxxx can that be due to Brexit?
People were given brains - if they refuse to use them and simply accept biased opinions no matter if that be pro Brexit or pro Remoan, then perhaps it's best to refrain from comment.
PS - get your facts right. Sunderland often cited as most productive plant in Europe or Nissan's most productive plant in the Western world. Japan is in the East. ( no doubt the brain-dead will argue that's wrong too ! ).
Symanski
In denial.
You're in denial! The question isn't moving to a different factory but that they now see a Japanese factory, with higher costs and labour shortages, as a better option than Britain.
Remember that's against a backdrop of having to build a new factory in Europe. For Nissan they could move production to a Renault factory instead. That tie-up could be used more effectively than it currently is.
scotty5
Another brain dead candidate
Another person not using their brain. What part of the EU's new trading agreement with Japan don't you understand? The game changed, it's now benefitial to make cars back home.
And I'll repeat once again, if it had anything to do with the UK pulling out of Europe... if Europe was such an attraction then the manufacturing base would simply move to another EU country, another EU country with cheaper labour rates. But they're not doing that, they're moving out of the EU altogether. How can that have anything to do with Brexit?
Symanski
High cost, and labour shortages.
You're ignoring the cost of building another factory, and that's not to say that work hasn't already been moved from the UK factories to factories in Europe. There are other Japanese factories in Europe and they're not closing.
But now it's no longer sustainable for Honda to continue to work in Britain when Britain will be as out of the EU as Japan, or more so. If the UK were staying in the EU then that Swindon plant would have been updated for the electrification models coming out. Honda were already starting to do that!
For Honda it was better to keep working with their higher costs in Japan where they struggle to find workers that it was to put up with Brexit Britain. Let that sink in.
TStag
scotty5 wrote:
The above proves Brexiteers believe any old rubbish fed to them. Suddenly we remainers are meant to believe that big car makers are queuing up to leave Britain because of factors unrelated to Brexit. What a load of clap trap. Gullible or what. There’s a reason the demographics of Leavers are as they are.....
best of it is that it’s often Leavers in places like Sunderland that will suffer the most.
Once the Tories deliver a no deal Brexit, Leavers will be first with the begging bowl and they’ll find the Tories will be first to ignore them!
scotty5
Head buried in sand?
Peter Cavellini
Lisbon Treaty......
Pro Brexit people, go read that again!, tell me you like think it'll any fairer.....
Symanski
You haven't.
You haven't read it. That "go read the Lisbon Treaty" comment has been busted so many times! You're making a fool of yourself going down that route.
Symanski
Mercedes tie-up already cancelled.
Remember that Sunderland was lined up to get a tie-up with Mercedes but they pulled out because of Brexit.
Brexit is going to kill of the British car industry. Honda have already decided to leave even though they had ships sailing with plant to upgrade their factory!
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