In a boost to the UK motor industry and to the low carbon sector, Nissan Motor Company has announced that it will produce two new models at its Sunderland plant. The news has been welcomed following uncertainty generated as a result of the referendum vote for 'Brexit'.
Nissan says that its decision "follows the UK government’s commitment to ensure that the Sunderland plant remains competitive".
The company has confirmed it will build both the new Qashqai and the X-Trail SUV in Sunderland. The decision means that the jobs of more than 7,000 workers at the Sunderland plant have been secured.
Carlos Ghosn, Chairman and CEO of Nissan said: “I am pleased to announce that Nissan will continue to invest in Sunderland. Our employees there continue to make the plant a globally competitive powerhouse, producing high-quality, high-value products every day, The support and assurances of the U.K. government enabled us to decide that the next-generation Qashqai and X-Trail will be produced at Sunderland. I welcome British Prime Minister Theresa May’s commitment to the automotive industry in Britain and to the development of an overall industrial strategy.”
Nissan’s Sunderland plant opened in 1986 and has produced almost 9 million cars since. One in three British cars are produced in Sunderland, which is the UK’s largest car plant of all time. In addition, 80% of production from Sunderland is exported to over 130 international markets. More than 2 million Qashqai’s have been built in Sunderland in less than 10 years. In addition to the 7,000 direct employees at Sunderland, the plant supports a further 28,000 British automotive supply chain jobs. To date, Nissan has invested more than £3.7 billion in Sunderland.
The BBC reports that the UK Government told Nissan it would seek tariff-free access to EU markets for the motor industry as part of Brexit talks. Greg Clark said this statement of the government's objectives had helped persuade Nissan to boost its investment in the UK.
Ministers have been under pressure to clarify the "support and assurances" Nissan said it received. Only last month Carlos Ghosn had warned that Nissan might not invest in the Sunderland plant unless the government guaranteed compensation for costs related to any new trade tariffs resulting from Brexit.
A senior Nissan Europe executive, Colin Lawther, said the company had received "no special deal" according to BBC reports. "It's just a commitment from the government to work with the whole of the automotive industry to make sure the whole automotive industry in the UK remains competitive. We would expect nothing for us that the rest of the industry wouldn't be able to have access to. We see this as a whole industry thing, not a Nissan thing."