Nissan scraps plan to build new X-Trail model in Britain

By Costas Pitas

 

FILE PHOTO: A Nissan logo is seen at a car dealership in Sunderland, Britain June 29, 2016. REUTERS/Andrew Yates/File Photo

 

LONDON (Reuters) - Carmaker Nissan has scrapped plans to build its new X-Trail SUV in Britain and will produce it solely in Japan, warning two months before Brexit that uncertainty over Britain's departure was making it harder to plan for the future.

 

Falling demand for diesel cars in Europe has forced Nissan to invest in other technologies and save costs. It cut hundreds of jobs at its Sunderland factory in the north of England, Britain's biggest car plant, last year as output slumped 11 percent, hit by levies and crackdowns on diesel.

 

"Nissan has increased its investments in new powertrains and technology for its future European vehicles," the firm said. "Therefore the company has decided to optimize its investments in Europe by consolidating X-Trail production in Kyushu."

 

"While we have taken this decision for business reasons, the continued uncertainty around the UK’s future relationship with the EU is not helping companies like ours to plan for the future," said Europe Chairman Gianluca de Ficchy.

 

Britain's business minister Greg Clark described the announcement as a "blow to the sector and the region."

 

Britain is due to leave the European Union on March 29. Lawmakers last month rejected Prime Minister Theresa May's Brexit deal, heightening fears of a disorderly no-deal Brexit and of new trade barriers. May said on Sunday she would seek a "pragmatic solution".

 

"We have a task force in place, reporting to me, that is considering all of the possible scenarios and the potential impact on the business," de Ficchy said in a letter to workers.

 

Nissan builds roughly 30 percent of the country's 1.52 million cars and exports the vast majority to the continent

It said four months after Britain voted to leave the EU in June 2016 that it would manufacture the new X-Trail in Britain - a major vote of confidence in the country and May, shortly after she took office.

 

A source told Reuters at the time that Nissan received a letter from the government promising extra support in the event that Brexit hit the competitiveness of the Sunderland plant.

 

The new X-Trail could have created hundreds of jobs.

 

The carmaker's planned investment in the next-generation Juke and Qashqai models, which was also announced in 2016, was unaffected, the firm said on Sunday.

 

The timing of the announcement comes just two days after an EU-Japan free trade agreement kicked in, which includes the European Union's commitment to removing tariffs of 10 percent on imported Japanese cars.

 

Many Japanese companies had long seen Britain as the gateway into Europe, after being encouraged to open factories in the country by former prime minister Margaret Thatcher but Brexit has thrown that into doubt, prompting consternation in Tokyo.

 

Sunday's announcement also comes as the firm continues to deal with the fallout from the arrest of its former boss Carlos Ghosn, which has clouded the outlook for the automaking alliance betweenNissan, Renault and Mitsubishi.

 

(Reporting by Costas Pitas, Editing by Kylie MacLellan, Janet Lawrence and Alexandra Hudson)

 

-- © Copyright Reuters 2019-02-04

Oh so it’s not a ‘Project Fear’ rumour.

 

EU Japan Free Trade Agreement ‘kicks in’.

 

Another home goal for Brexit.

I have already mentioned before no good will come out of Brexit 

already said about the leave campaign very big in Sunderland

but they should have no complaints as voted out coming out of Europe is more important to them than jobs 

there will plenty more to come in companies putting less investment in 

 

Hang on !

So a car that's never been built here, wont be built here, no extra jobs were created, no one will lose their jobs by this , and they will now build it in Japan, not in the great EU

Sounds like another thing to blame Brexit on

lets forget about the massive falls in diesel sales, and the reduced demand for these type of vehicles 

Lets not ask why they wont be building this in the EU if it is soo good

Just the tip of a very big iceberg. 

15 minutes ago, Joinaman said:

Hang on !

So a car that's never been built here, wont be built here, no extra jobs were created, no one will lose their jobs by this , and they will now build it in Japan, not in the great EU

Sounds like another thing to blame Brexit on

lets forget about the massive falls in diesel sales, and the reduced demand for these type of vehicles 

Lets not ask why they wont be building this in the EU if it is soo good

Of course, it’s splendid news for Sunderland.

 

 

X-Trail becomes Ex-Trail, disappears down the BreX-Trail.

Looks like they put their X in the wrong place two hand a half years ago never mind whippet racing could get a boost???? 

1 hour ago, Chomper Higgot said:

Oh so it’s not a ‘Project Fear’ rumour.

 

EU Japan Free Trade Agreement ‘kicks in’.

 

Another home goal for Brexit.

Brexit, the gift that keeps giving. 

1 hour ago, Chomper Higgot said:

Oh so it’s not a ‘Project Fear’ rumour.

 

EU Japan Free Trade Agreement ‘kicks in’.

 

Another home goal for Brexit.

Falling diesel sales more than Brexit behind Nissan's X-Trail decision

Demand for the diesel version of the Qashqai, already produced at the Sunderland plant, has dropped quickly, with the fuel type accounting now for 20% of the sales mix, down from 40% only two years ago.

https://www.theguardian.com/business/2019/feb/03/falling-diesel-sales-more-than-brexit-behind-nissans-x-trail-decision

36 minutes ago, vinny41 said:

Falling diesel sales more than Brexit behind Nissan's X-Trail decision

Demand for the diesel version of the Qashqai, already produced at the Sunderland plant, has dropped quickly, with the fuel type accounting now for 20% of the sales mix, down from 40% only two years ago.

https://www.theguardian.com/business/2019/feb/03/falling-diesel-sales-more-than-brexit-behind-nissans-x-trail-decision

‘Uncertainty around the UK’s future relationship with the EU is not helping companies to plan for the future,’ says chairman

 

https://www.independent.co.uk/news/business/nissan-brexit-sunderland-japan-job-cuts-uk-eu-trade-exports-no-deal-gianluca-de-ficchy-a8760756.html

1 hour ago, Chomper Higgot said:

Oh so it’s not a ‘Project Fear’ rumour.

 

EU Japan Free Trade Agreement ‘kicks in’.

 

Another home goal for Brexit.

"Falling demand for diesel cars in Europe"

 

"output slumped 11 percent, hit by levies and crackdowns on diesel."

 

"It said four months after Britain voted to leave the EU in June 2016 that it would manufacture the new X-Trail in Britain - a major vote of confidence in the country"

 

Never mind the facts eh, lets just blame it on Brexit?

 

And here's a question for you, if this is all about Brexit, why didn't Nissan move production to another European company?

 

" the company has decided to optimize its investments in Europe by consolidating X-Trail production in Kyushu."

 

1 hour ago, Joinaman said:

Hang on !

So a car that's never been built here, wont be built here, no extra jobs were created, no one will lose their jobs by this , and they will now build it in Japan, not in the great EU

Sounds like another thing to blame Brexit on

lets forget about the massive falls in diesel sales, and the reduced demand for these type of vehicles 

Lets not ask why they wont be building this in the EU if it is soo good

Economic stagnation is good - yes?

5 minutes ago, Chomper Higgot said:

‘Uncertainty around the UK’s future relationship with the EU is not helping companies to plan for the future,’ says chairman

 

https://www.independent.co.uk/news/business/nissan-brexit-sunderland-japan-job-cuts-uk-eu-trade-exports-no-deal-gianluca-de-ficchy-a8760756.html

Most people I know that have diesel cars are replacing them with Petrol cars due to  possibility of tougher rules or extra costs hanging over their cars. 

Talk about banning vehicles from streets during certain periods doesn't help

MOTORISTS can now be fined for driving on ultra-low emissions streets in areas of London. Here's what areas will be affected and how much a motorist can be penalised.

https://www.express.co.uk/life-style/cars/1012260/Petrol-diesel-ban-London-air-pollution-fine

12 minutes ago, nahkit said:

"Falling demand for diesel cars in Europe"

 

"output slumped 11 percent, hit by levies and crackdowns on diesel."

 

"It said four months after Britain voted to leave the EU in June 2016 that it would manufacture the new X-Trail in Britain - a major vote of confidence in the country"

 

Never mind the facts eh, lets just blame it on Brexit?

 

And here's a question for you, if this is all about Brexit, why didn't Nissan move production to another European company?

 

" the company has decided to optimize its investments in Europe by consolidating X-Trail production in Kyushu."

 

“And here's a question for you, if this is all about Brexit, why didn't Nissan move production to another European company?”

 

Because Japan and the EU now have a free trade agreement.

 

Which Brexiteers are keen to have no part of.

 

 

 

 

6 minutes ago, Chomper Higgot said:

“And here's a question for you, if this is all about Brexit, why didn't Nissan move production to another European company?”

 

Because Japan and the EU now have a free trade agreement.

 

Which Brexiteers are keen to have no part of.

 

 

 

 

It appears that Nissan wouldn't be selling many diesel cars with the Japan EU agreement in place 

European commissioner: 'Diesel cars are finished'

https://www.autocar.co.uk/car-news/new-cars/european-commissioner-diesel-cars-are-finished

Toxic Brexit.

5 hours ago, Joinaman said:

no one will lose their jobs by this

Of coarse they will when the current production falls off in favor of new models built elsewhere.

 

How can you plan for new cars when after Brexit technical requirements may differ from the EU.

5 hours ago, Chomper Higgot said:

Because Japan and the EU now have a free trade agreement.

 

Which Brexiteers are keen to have no part of.

So you think the UK will never make any trade agreements of their own then?

Just now, nahkit said:

So you think the UK will never make any trade agreements of their own then?

No, when the U.K cuts its ties to the E.U.

The UK will drift off , float around the oceans for a while , then fall off the end of the Earth , all the people will have died of starvation by then , or been killed be rioters anyway

7 hours ago, shackleton said:

I have already mentioned before no good will come out of Brexit 

already said about the leave campaign very big in Sunderland

but they should have no complaints as voted out coming out of Europe is more important to them than jobs 

there will plenty more to come in companies putting less investment in 

 

Total <deleted>. Nissan already stated its a business decision. They also said the way Brexit is being handled is not helping matters, but we know that already. Knockers will always be neg. Now you go tug the forelock to messrs Junker et al.

2 hours ago, Basil B said:

Of coarse they will when the current production falls off in favor of new models built elsewhere.

 

How can you plan for new cars when after Brexit technical requirements may differ from the EU.

You been reading too much propaganda. Open your eyes man, why ever would that happen?

35 minutes ago, jinners said:

You been reading too much propaganda. Open your eyes man, why ever would that happen?

When I “open my eyes man” I see:

1. long-standing and reputable CXOs, economists, and authorities independently from each other putting out more and more severe warnings about Brexit every day;

2. people who previously tried to make me believe that 70 million Turkish would come to the UK and 350 million pounds per week would be saved for the NHS screaming “Project Fear”

 

Who do you think i consider as “propaganda”? Open your eyes man. 

54 minutes ago, jinners said:

Total <deleted>. Nissan already stated its a business decision. They also said the way Brexit is being handled is not helping matters, but we know that already. Knockers will always be neg. Now you go tug the forelock to messrs Junker et al.

Perhaps this is a cunning plan by Sunderlanders:

 

Vote Brexit and hasten a return to the industrial wasteland they do miss.

4 hours ago, nahkit said:

So you think the UK will never make any trade agreements of their own then?

Why would anyone want to stick their neck out to trade with a small island that is going down the pan???

4 hours ago, jinners said:

You been reading too much propaganda. Open your eyes man, why ever would that happen?

Propaganda???

You mean something like this???

2 minutes ago, Basil B said:

Why would anyone want to stick their neck out to trade with a small island that is going down the pan???

Exactly.

The small island is finished.

I hope the racist bigots are happy with their decision. 

3 minutes ago, Basil B said:

Propaganda???

You mean something like this???

You mean that was a lie?

Surely not.

Boris and Smog would never do that.

Ministers condemned for hiding £61m aid package for Nissan to build new cars in UK after Brexit

 

Ministers have been condemned for keeping secret a £61m aid package for Nissan to build new cars in the UK after Brexit, after insisting there had been no “special deal”.

Greg Clark, the business secretary, came under fire as he announced the Japanese giant would have to reapply for the cash, after its shock decision to abandon production of the X-Trail SUV at its Sunderland plant.

 

A letter revealing the package – originally set to be up to £80m – was finally released, but only “after the press had got hold of it”, senior Conservative MP Nicky Morgan protested.

https://www.independent.co.uk/news/uk/politics/nissan-brexit-deal-eu-uk-japan-cars-ministers-theresa-may-a8763121.html

21 hours ago, Joinaman said:

Hang on !

So a car that's never been built here, wont be built here, no extra jobs were created, no one will lose their jobs by this , and they will now build it in Japan, not in the great EU

Sounds like another thing to blame Brexit on

lets forget about the massive falls in diesel sales, and the reduced demand for these type of vehicles 

Lets not ask why they wont be building this in the EU if it is soo good

Nissan have had a large manufacturing plant, in Sunderland, for many years. It's continued existence relies upon securing new models for production. No new models to produce and production falls to zero, causing the plant to close. This decision will result in the loss of thousands of jobs in the North East.

 

Ironic that the people of the N.E. voted for Brexit by a much higher majority than the national average.

 

Talk about turkeys voting for Christmas....