• Car Dealer Plus
No Result
View All Result
  • Latest
  • Used Cars
  • Live
  • Forum
  • Power 2020
  • UCA 2020
  • UCA 2021
  • CDX
  • Knowledge
  • Suppliers Guide
  • About Us
  • Latest Issue
  • Top 100
  • CD Plus
  • Latest
  • Used Cars
  • Live
  • Forum
  • Power 2020
  • UCA 2020
  • UCA 2021
  • CDX
  • Knowledge
  • Suppliers Guide
  • About Us
  • Latest Issue
  • Top 100
  • CD Plus
No Result
View All Result

Reports Nissan could abandon X-Trail building plans ‘deeply troubling’

Car Dealer Magazine by Car Dealer Magazine
February 4, 2019
0
Home News

REPORTS that Nissan will abandon plans to build its X-Trail model at its Sunderland plant are ‘deeply troubling’, an MP has said.

According to Sky News, the company will confirm the move to cancel plans to build the new version of the SUV on Monday, just 53 days before Britain is scheduled to leave the EU.

Nissan had voiced concerns about Brexit before finally committing to build the new Qashqai and X-Trail models in its north-east factory in October 2016, four months after the EU referendum.


Bridget Phillipson, Labour MP for Houghton and Sunderland South, tweeted: ‘If confirmed, this would represent deeply troubling news for the north east economy.

‘So many jobs and livelihoods depend on Nissan’s success.’

The Japanese company refused to shed light on the situation. A spokesman said: ‘Nissan does not comment on rumour or speculation.’

In a statement posted on Twitter, Labour Sunderland Central MP Julie Elliott said ‘the downturn in the diesel market is what is being blamed’ for the decision.


‘I will be doing everything I can to protect the jobs at the Sunderland plant. I will be asking for the government to intervene, and will stay in close contact with the company itself,’ she said.

‘But we cannot deny the inevitable role that Brexit plays here. The constant uncertainty, the chaotic government. None of it is conductive to encouraging business investment in this country.’

Concerns

She said she would update constituents with information once she finds out more, and that ‘we must await official announcement from Nissan for the plans’.

At the time, the decision to build its next-generation Qashqai and add production of the new X-Trail model at the site had eased concerns about the future of the north-east factory after Brexit.

It secured thousands of jobs in the Brexit-backing city, but prompted a volley of questions over whether a so-called ‘sweetheart deal’ between the car-maker and the government had been struck to protect the manufacturer from any post-Brexit EU tariff wall.

Ministers strongly denied any financial incentives were offered and chancellor Philip Hammond said any costs arising from the assurances would be small enough to be covered within the Department for Business’s existing spending limits.

The Sunderland plant, which has been active since 1986, employs almost 7,000 people, producing around 2,000 cars a day.

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

According to Sky News, Nissan’s decision is not expected to have a major impact on jobs.

Other Nissan models built at the Sunderland plant include the Qashqai, Juke, Q30, Note and the zero-emission electric Leaf.

The U-turn comes as figures show car production slumped by almost a tenth last year, leaving the industry on ‘red alert’ amid continued Brexit uncertainty.

Decline

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.

Just over 1.5 million cars left UK factories in 2018 – a 9.1 per cent decline on the previous year, and the lowest for six years.

Production of diesel cars was down by 22 per cent to 561,000 last year.

SMMT chief executive Mike Hawes said the fall in investment was ‘deeply depressing’ and should send a strong signal to politicians to secure a Brexit trade deal.

The reported decision by Nissan follows a triple jobs blow in the UK car industry.

American car manufacturer Ford has confirmed nearly 400 jobs will be lost at its engine manufacturing plant in Bridgend.

The company said the ‘voluntary separation programme’ at the Welsh factory is needed to cut costs and create a ‘sustainably profitable business’ in Europe.

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

Most of the cuts will be in the UK, with a voluntary programme being launched, and are in addition to 1,500 workers who left the company last year.

Japanese firm Honda also announced six non-production days in April under contingency plans to mitigate the risk of disruption to production at its Swindon factory after the UK leaves the EU.

MORE: Ford confirms hundreds of jobs to go at Bridgend plant

MORE: Honda announces six-day shutdown

MORE: Jaguar Land Rover to shed 4,500 jobs

MORE: Car industry on red alert as production slumps, SMMT warns

MORE: Nissan makes further commitments to Sunderland post-Brexit

Get more from Car Dealer

  • Premium stories
  • Used car data
  • Magazine early access
Register

Or Sign in

Related Posts

Podcast Jon Reay
News

Car Dealer Podcast: We plan our pre-reg Roller business, talk furlough fraud, and discuss booming sales

April 10, 2021
MG Cyberster
Car News

MG shows off first pictures of Cyberster electric sports car concept

April 10, 2021
Flowers left for Duke of Edinburgh
News

April 10 round-up: Duke’s funeral plans; MG shows off Cyberster; Shapps hints to holidays abroad; House price high

April 10, 2021
Motorpoint Chingford
News

Over two thirds of motorists waiting for showrooms to reopen to buy a new car

April 10, 2021
Pound coins and bankotes via PA
News

Lockdown restrictions caused consumer car finance new business volumes to drop by more than a quarter in February

April 9, 2021
Gillanders Motors aftersales manager Derek Pirie, left, and sales manager Mark Stevenson, April 2021
News

Gillanders Motors becomes LEVC’s most northerly dealership

April 9, 2021

Want the latest news?

Sign up to Car Dealer's daily news email updates

Subscribe
Electrified vehicle registrations overtake diesels for the first time in Europe
News

What is stopping car buyers from switching to EV? Our exclusive white paper reveals all

April 8, 2021
How many car dealerships does each manufacturer have in the UK? Car Dealerships Locations List 2021 revealed
News

How many car dealerships does each manufacturer have in the UK? Car Dealerships Locations List 2021 revealed

March 12, 2021
Used Car Awards with Mike Brewer and James Baggott graphi
News

Who won what at the Used Car Awards 2020? Mike Brewer reveals our winning car dealers

March 12, 2021
Used Car Awards 2021 logo
Used Car Awards

Used Car Awards 2021 will be back in all their glory on November 29 hosted by Mike Brewer

March 17, 2021
The Newcomers: Here are the 10 electric car brands coming to a forecourt near you soon
News

The Newcomers: Here are the 10 electric car brands coming to a forecourt near you soon

March 30, 2021
Trophy Cars forecourt
News

Investigation: Meet the hyper-specialist car dealers making their money from weird and wonderful motors

March 12, 2021
Car Dealer Top 100 – The list in full of the most profitable car dealers in the UK
Car Dealer Top 100

Car Dealer Top 100 – The list in full of the most profitable car dealers in the UK

February 10, 2021
BMW, Mercedes, Audi and Volvo, could they be sold under one roof?
News

Multi franchising: Premium brands rule out selling cars alongside rivals in same dealer – as others remain tight-lipped

March 11, 2021
  • Latest
  • Used Cars
  • Live
  • Forum
  • Power 2020
  • UCA 2020
  • UCA 2021
  • CDX
  • Knowledge
  • Suppliers Guide
  • About Us
  • Latest Issue
  • Top 100
  • CD Plus
Call us: 020 8125 3880

© 2020 Blackball Media

No Result
View All Result
  • Car Dealer Plus
  • Latest
  • Used Cars
  • Live
  • Forum
  • Power 2020
  • Used Car Awards 2020
  • Used Car Awards 2021
  • CDX
  • Knowledge
  • Suppliers Guide
  • About Us
  • Latest Issue
  • Top 100

© 2020 Blackball Media

Log In
Register
Register
Server 1