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
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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Comments
13

30 September 2016
Tell him to poke it up his hoop.

30 September 2016
Me suspects he will tell Sunderland to poke it a lot further than his hoop.

Brexit marked the triumph of ignorance over the experts.
Thing is, experts tend to be right. Sure, economy not tanking yet, but we've got free trade and no tarifs. Watch as the morons such as Liam Fox argue for hard Brexit - companies like Nissan (and JLR) don't like it and the thriving car industry will thrive no more.

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30 September 2016
The French have had a word with Mr Ghosn, Mrs May needs to tell him ,which I am sure she will that the UK is placed to be the best option in Europe to operate any car manufacturing full stop.Sunderland has been a great success for Nissan, built on investment and the drive from everybody involved with the plant.Mrs May could always Nationalise Sunderland ?

30 September 2016
The French have had a word with Mr Ghosn, Mrs May needs to tell him ,which I am sure she will that the UK is placed to be the best option in Europe to operate any car manufacturing full stop.Sunderland has been a great success for Nissan, built on investment and the drive from everybody involved with the plant.Mrs May could always Nationalise Sunderland ?

30 September 2016
At the end of the day I am sure we will get entry to the EU and likewise they will here .The Germans have about 38% market share in their brands of Uk market plus all the Ford and other cARS MADE IN GERMANY,FRANCE AND SPAIN>If we did not get this it is simple,put 30% import tariffs on cars give the Uk manufacturers a subsidy from this andm any balance put to a uk manufacturing kitty and onshore all sorts again even Terrys chocolaet Orange and what was Rowntrees Aftereight.think they are made in Poland now.The National Insurance costs alone in Spain and France are two or three time sthe Uk rat efor starters.

30 September 2016
Theresa May is busy investing billions in the French economy via EDF and Hinkley point. It has nothing to do with the French and all to do with tariffs. Liam Fox is arguing for membership of the WTO which will incur a 10% tariff on all exports to Europe. These car companies are here for access to Europe (they build cheap factories in America for access to America, and in Asia for access to Asia). Without access to Europe we're toast, as is the UK car manufacturing industry. To argue we'll export elsewhere in the world instead is fantasy - the car companies have that covered.

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30 September 2016
"I am sure we will get entry to the EU "

You see, the thing is, we're in the EU. No one is trying to argue to get membership of it....just trying to prevent economic melt down on the back of lies (remember the £350 million a week to the NHS)....

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3 October 2016
ersatz wrote:

"I am sure we will get entry to the EU "

You see, the thing is, we're in the EU. No one is trying to argue to get membership of it....just trying to prevent economic melt down on the back of lies (remember the £350 million a week to the NHS)....

If you dont like democracy Mr Europhile, there is a solution, I gather North Korea is lovely this time of year, suck it up.

30 September 2016
Oh dear, then I wont be buying a new Nissan any time soon. Aren't they in an alliance with Renault ? yeah, I wont be buying one of those either

1 October 2016
This always amuses me; the exit campaign told lies. And the remain camp told the truth throughout the campaign? How many MP's voted to remain but wanted to leave? I don't find it funny that people forget that our Government is funded by the British tax payer. Ghosn doesn't want money from our Government; he wants it from every taxpaying worker in the UK. I'm sorry, there are far more deserving cases than this pompous oaf. Take a hike

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