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Nissan's Sunderland plant faces delays in new investment post Brexit vote

Nissan factory building a car

The Japanese company won't invest into new projects unless it can be guaranteed "compensation" against trade barriers from Brexit

2016-09-30 09:00

Nissan will delay new investment into its Sunderland plant unless it will be compensated for the potential losses it takes from Brexit, its CEO Carlos Ghosn has said. 

Nissan has also said it is deferring the decision on where to build its new model line-up until it knows whether or not cars exported from the UK to Europe will be hit with tariffs or other trade barriers following Brexit.

Ghosn said he wants to see a “commitment” from the UK Government that in the instance the European Union imposes tariffs on UK exports, carmakers with plants in the UK will receive “some kind of compensation.” 

The Sunderland plant has been a powerhouse for Nissan over the years. Churning out more than 500,000 models a year, it employs a workforce of 7,000 as well as thousands of others in the supply industry. It currently builds the Nissan Qashqai, Leaf, Juke, as well as the Infiniti Q30 and QX30 following a recent £250 million investment into the plant. 

Ghosn said Nissan would defer the decision on where to build its new generation of models that are currently assembled in Sunderland. He said: “Important investments decisions will not be made in the dark.”

However, Ghosn also assured he has no desires to close the Sunderland factory. He said: “We like our presence in the UK. Sunderland is a great plant, we have a good technical centre.”

Will the UK manufacturing sector be hit with tariffs from the EU? Tell us what you think in the comments below...

Martin Saarinen
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