Car giant Nissan has confirmed in a letter to workers that the next-generation X-Trail, planned for its Sunderland flower, will instead be produced in Japan – with the company’s chairman stating Brexit helped influence your choice. The move is another huge blow to the UK’s car industry which includes been warning for a long time about the impact of Brexit uncertainty on top of other problems such as a slump in diesel sales. At that time they were both planned as ‘traditional’ models, powered by inner combustion motors.
X-Trail was already going to be produced in Kyushu, but there is a good business case for bringing production to Europe as well. Since that time, as you know, the environment for the electric motor car industry in Europe has changed significantly. To meet the changing emissions regulations we’ve had to get a lot more in new powertrains for our future models like X-Trail.
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At once, the volume forecasts for X-Trail in Europe have reduced. For all those reasons the business has made a decision to optimise our investments and focus creation in Kyushu, of adding another production site instead. For the European business, this does not change the actual fact that X-Trail is – and can continue to be – an essential model for us. Today’s announcement will be interpreted with a lot of people as a choice related to Brexit. As being a accountable business with 16,000 employees in your community, You are needed by me to learn that people are preparing across all functions, and with our supply string, for anything that might impact our current business design.
Nissan was still investing greatly in the new Juke model and the next-generation Qashqai, said Mr de Ficchy. Since they were allocated originally, those two models have also needed a great deal of additional investment to meet the new emissions rules and to electrify their powertrains. Nissan professional vice leader for production and offer string management, Hideyuki Sakamoto, said: ‘A model like X-Trail is manufactured in multiple locations internationally, and can be re-evaluated based on changes to the business environment therefore. Mr de Ficchy said: ‘Nissan is investing heavily in new technologies and powertrains for the next generation of vehicles inside our Sunderland plant.
To support this we are taking benefit of our global possessions, and with X-Trail manufactured in Japan already, we can reduce our in advance investment costs. We appreciate this will be disappointing for our UK team and companions. The Sunderland plant, which opened in 1986, employs 7,000 workers, producing around 2,a day 000 cars. Other Nissan models built at the site include the Qashqai, Juke, Q30, Note and the zero-emission electric Leaf. The decision follows numbers last week displaying car creation slumped by almost a 10th this past year, leaving the industry on ‘red alert’ amid continuing Brexit doubt.
The Society of Motor Manufacturers and Traders (SMMT) said investment got effectively ‘stalled’ amid anxieties on the UK’s future trading potential clients with the EU. Over 1 Just.5 million cars left UK factories in 2018, a 9.1% drop on the previous year, and the cheapest for five years. Production of diesel vehicles was down by 22% to 561,year 000 last. SMMT chief executive Mike Hawes said the fall in investment was ‘deeply depressing’ and really should send a solid signal to politicians to secure a Brexit trade deal. Japanese firm Honda has announced six non-production times in April under contingency plans to mitigate the chance of disruption to production at its Swindon manufacturing plant following the UK leaves the EU.