Currently reading: Nissan won't invest further in Sunderland plant without Brexit deal
Nissan’s Sunderland plant will not get further investment unless the Government strikes a deal with the manufacturer to compensate for potential Brexit costs
Jimi Beckwith
News
2 mins read
30 September 2016

Nissan will not invest further in its Sunderland plant until it reaches a deal with the Government to receive compensation for the additional costs and taxes it might incur as a result of Brexit.

Nissan has confirmed that it will expand production at its Sunderland production site, despite Brexit concerns

Speaking at the Paris motor show, Nissan boss Carlos Ghosn said: "If I need to make an investment in the next few months and I can’t wait until the end of Brexit, then I have to make a deal with the UK government. If there are tax barriers being established on cars, you have to have a commitment for carmakers who export to Europe that there is some kind of compensation."

Read more: Nissan Qashqai production to increase at UK factory

Crucially, Ghosn isn't yet threatening to pull a car from production in Sunderland, but does wants compensation if the UK leaves the EU single market and the EU imposes tariffs on exported cars from the UK to the EU as a result.

Compensation is possible: the UK could - because it will no longer be restricted by EU law - reduce corporation tax for UK car makers or engineer some tax break deals on research and development. It’s thought that Ghosn made his announcement because he is aware of that fact.

Read more: Paris motor show - report and gallery

Ghosn’s announcement confirms a previous story where he warned of grave implications for the plant in the event of a Brexit vote. Nissan has invested heavily in the plant in the past. 

Such a move would be a blow to the UK’s car industry, because the plant accounts for a third of all Britain’s car exports, as well as one of the UK’s most prolific domestically-built models, the Qashqai.

It is unclear how Ghosn's announcement may delay future production. With the second-generation Juke already greenlighted for production, the next investment decision due is the third-generation Qashqai. The facelifted second-gen Qashqai will arrive next year and includes autonomous technology. 

Nissan's European boss Paul Willcox recently said that the Qashqai is moving to 'Line 2', which will allow the Sunderland plant to build more examples of the SUV model. Sunderland also builds around 20,000 Leaf EVs each year, as well as the Infiniti Q30. The plant built 120,000 Jukes in 2014 and 110,000 in 2015.

Additional reporting by Hilton Holloway 

Read more: the SMMT has issued a post Brexit warning about the risk posed to the UK car industry

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bowsersheepdog 4 October 2016

Dealing with the organ-grinders, not the surrender monkeys

Ghosn can take his triple-nationality carcass back to Paris and inform whichever philanderer happens to be in charge this week that we'll be sorting out the necessary details with the Germans when we decide the time is ready, and meanwhile they can sit down and eat cheese out of their white flags like they always do, until Merkel issues their next set of orders.
80sXS 1 October 2016

Potential

Having or showing the capacity to develop into something in the future. So it may or may not affect Nissan. But they still want compensation just in case. Mmmmm.
dipdaddy 1 October 2016

I'm surprised how leave and

I'm surprised how leave and remainers blame each other and one person who created this mess was Cameron. he gave the referendum as a deal for a pre election manifesto that if the tories win then he will try to strike a deal with EU and failing that there will be a referendum. he's the ignorant one and he relied on the so called "experts" to play the immigrant and EU card and you'll get the votes. now he's paid the price.

With regards to Nissan yes, the vote has left an unpredictable future and private firms have a right to be cautious but not so to threaten the government that you will pull the plug if it don't go your way. the very financial firms who wanted relaxed financial regulation were the ones who made the credit crunch mess and now they threaten to leave the UK for EU. Not to mention these big corporate CEO's are being poked by their own government, whether its japanese or french. you just can't please any private firms, as they like holding government to ransom.

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