Nissan would have closed its Sunderland plant post-Brexit had a deal not been made with the UK Government

Nissan’s Sunderland plant would have been shut down if the manufacturer hadn’t struck a deal with the Government after the UK’s vote to leave the European Union (EU).

A report by Bloomberg alleges that an insider of the brand’s discussions with the Government revealed that Nissan told officials that the plant would eventually close, and the construction of the next-generation Qashqai and X-Trail would have been placed elsewhere.

The plant currently employs more than 7000 people and is the largest car producing facility in the UK. It was recently announced as the factory where the two new models would be produced, following negotiations with the Government. The results of these talks have since been declared as open to all car manufacturers in the UK.

Greg Clark, the UK's business secretary, is under pressure from the shadow cabinet to publish his letter to Nissan, but he has so far refused to do so, saying the letter contains "sensitive commercial information".

Clark’s letter to Nissan has become a contentious topic in parliament, as Labour MPs call for the publication of the Government’s deal with Nissan and other car makers. Clark said on the BBC’s Andrew Marr show that UK car makers would be immune from any export tariffs that would come about as a result of Brexit, but it is as yet unclear if this is the full extent of the offer.

BMW and Honda have both announced that they see no reason to leave the UK as a consequence of Brexit. However, several manufacturers, including Ford, Honda and Suzuki, recently raised the prices of their cars in response to the fluctuating value of pound sterling.

A BMW spokesman said: "The situation regarding the UK’s future trading relationship with the EU and other countries remains uncertain. Uncertainty is not helpful when it comes to making long-term business decisions. However, unlike Nissan, we are not in the situation where a major UK investment decision needs to be taken imminently."

"Of course we continue to monitor the situation very closely but for the moment, the BMW Group continues to operate “business as usual” at its four manufacturing bases in the UK."

A Nissan spokesman claimed that this was not the case, but Autocar is waiting on an official statement from the brand. It is not yet known where else would have potentially produced the Qashqai and X-Trail, had a deal not secured Sunderland's production of the models.

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Comments
17

1 November 2016
Ghosn looks a bit scary, like one of the puppets from the Dark Crystal.

1 November 2016
So the dinner lady mentioned it in passing. I just hate made up stories that start with a Source said, a close friend. an insider.... The BBC and Sun are best at it.

 

Hydrogen cars just went POP

1 November 2016
Well it still will eventually close one day. Whether it would have closed any time soon however, is likely to be BS. The UK is Nissan's biggest European market by far. Close UK production and those sales are put at risk by potential tariffs, FX risk and loss of goodwill. Plus close one of the most efficient plants and invest where - the rest of Renault and Nissan's EU production are in Spain and France which, aside from being high cost countries, also have risks associated with the Euro and its future.

1 November 2016
Westminster are just ramping up the spin that everything will be fine after the UK leaves the EU in fear that these car manufactures in the UK will close or relocate to the some part of the EU now. They can have all the written guarantees they like from the UK Government to these car manufactures but until article 50 is invoked and the negations start nothing is guaranteed they could all still close or move to the rest of EU.

1 November 2016
like they used to do prices would be under less pressure,they probably regret the day they stopped Ukcar production .The associated payroll costs in Spain and France are two to three times the uk level.

1 November 2016
"BMW and Honda have both announced that they see no reason to leave the UK as a consequence of Brexit. However, several manufacturers, including Ford, Honda and Suzuki, recently raised the prices of their cars in response to the fluctuating value of pound sterling."

The £ has devalued, that means all imports will be more expensive and all exports from UK factories are cheaper for other countries to buy, isn't that good for uk production !!! The pro eu brigade just refuse to accept the Brexit vote and are determined to diss the uk, to prove a point that Brexit would bring doom and gloom to the UK economy. Why don't they just shut the F¥[€ U? and help make Brexit work. We won't know what's likely to happen councerning tarrifs and duties until it's all sorted, but currently the situation is pretty favourable for exports. I don't care if UK plc has promised something to these companies, as long as it give us confidence, that will benefit us all. Stop the doom and gloom scaremongers taking this country down. As they say, if you talk about it enough, it will happen...

Uk car production is some of the best and most efficient in europe and even the world, stop spreading scare stories about and support the Uk manufacturing sector, their not the ones that got this country into a financial mess. Next time you want a new car, try to choose one that's built in the UK, that what the French and Germans do.

1 November 2016
The UK taxpayer shouldn't have to subsidise any company that makes a profit in this country.

1 November 2016
Nissan won't leave the UK for another European country because of the risks of doing so. Once the UK leaves the EU, other countries like France and the Netherlands will also have referendums on leaving too.

1 November 2016
In a healthy democracy, a government would reveal any deal it has done with a profit making company.

6 November 2016
max1e6 wrote:

In a healthy democracy, a government would reveal any deal it has done with a profit making company.

They have revealed the nature of the deal, and just because the pro-EU side don't like the fact that it doesn't involve giving them cash doesn't alter that.

I don't need to put my name here, it's on the left

 

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