Nissan cancels plans to make X-Trail SUV in the UK

Share

The company said it instead plans to consolidate production of the next generation X-Trail at its plant in Kyushu, Japan, where the model is now produced.

Nissan said it is increasing spending on new powertrains and technology for future European vehicles so it made a decision to optimize its investments in Europe by consolidating X-Trail production in Kyushu, Japan, and making the plant the global production hub for the SUV.

Her tweet added that Brexit was just a part of the problem.

In the run up to the 2016 Brexit referendum, Nissan said it would prefer Britain to remain in the EU.

The Japanese manufacturer is expected to confirm on Monday it is to abandon the project at the factory which employs 7,000 people. The X-Trail is produced exclusively in Japan.

The multimillion-pound package offered to the carmaker in 2016 was tied to its pledge to build the X-Trail SUV alongside a new model of its...

"This represents a serious blow to the communities that depend on the jobs Nissan creates and supports", Keir Starmer, the opposition Labour Party's Brexit spokesman, wrote on Twitter.

The company said planned investment in the next-generation Juke and Qashqai, also announced in 2016, was unaffected.

"It is a massive psychological blow as well as an economic blow", Liberal-Democrat Party leader Vince Cable said on "Sophy Ridge on Sunday" on Sky News before Nissan confirmed the decision.

More news: Bow Wow Arrested for Allegedly Beating Woman
More news: Xbox Live Takes a Nosedive, Drags Consoles with It
More news: Study finds breakfast might not be most important daily meal

'I will be doing everything I can to protect the jobs at the Sunderland plant.

The factory builds the Qashqai and Juke SUVs, along with the Nissan Leaf and Infiniti's Q30 and QX30 models, according to the Automotive News Europe Guide to European Assembly Plants.

Nissan is part-owned by French manufacturer Renault, which had led to concerns that production could be moved to France to avoid any tariffs which might be introduced on exports to the European Union if the United Kingdom leaves the single market in a hard Brexit.

The company is the largest employer in the city which voted to leave the bloc by 61 percent.

The British vehicle industry has already seen a dramatic drop in investment since the vote, and business leaders have warned of further blows to the sector after the UK's withdrawal.

A report by the Society of Motor Manufacturers and Traders (SMMT) said investment had effectively "stalled" amid fears over the UK's future trading prospects with the EU.

It comes after Ford confirmed on Friday that it would be cutting around 370 jobs at its Bridgend plant as it restructures its production across Europe and the United Kingdom.

It followed a similar move by Jaguar Land Rover to reduce its 44,000 workforce by 4,500 under plans to make £2.5 billion of cost savings - with most of the cuts in the UK.

‎Ford announced it was cutting jobs in the United Kingdom as part of a regional plan.

Share