Car huge Nissan has confirmed in a notice to employees that the next-generation X-Trail, prepared because of its Sunderland plant, will instead be made in Japan – with the company’s chairman saying Brexit helped impact your choice. The move is another huge blow to the UK’s car industry, which includes been warning for years about the impact of Brexit doubt together with other problems like a slump in diesel sales. In those days they were both planned as ‘traditional’ models, powered by inner combustion engines.
X-Trail had been going to be produced in Kyushu, but there is a good business case for getting production to Europe as well. Since that right time, as you know, the surroundings for the automobile industry in Europe has transformed significantly. To meet the changing emissions regulations we’ve had to get much more in new powertrains for our future models like the X-Trail.
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At the same time, the quantity forecasts for the X-Trail in Europe have reduced. For those reasons the business has decided to optimize our investments and concentrate creation in Kyushu, of adding another creation site instead. For the European business, this will not change the fact that the X-Trail is – and will continue to be – an essential model for all of us. Today’s announcement will be interpreted by a lot of individuals as a choice related to Brexit. As a responsible business with 16,000 employees in your community, I want you to know that we are planning across all functions, and with this supply chain, for anything that might impact our current business model.
Nissan was still trading seriously in the new Juke model and the next-generation Qashqai, said Mr de Ficchy. Since they were allocated originally, those two models also have needed a great deal of additional investment to meet the new emissions rules and also to electrify their powertrains. Nissan executive vice president for manufacturing and offer chain management, Hideyuki Sakamoto, said: ‘A model like the X-Trail is manufactured in multiple locations internationally and can therefore be re-evaluated predicated on changes to the business enterprise environment. Mr de Ficchy said: ‘Nissan is investing heavily in new technologies and powertrains for another generation of vehicles in our Sunderland plant.
To support this we are taking benefit of our global property, and with X-Trail manufactured in Japan already, we can reduce our in advance investment costs. We appreciate this will be unsatisfactory for our UK team and companions. The Sunderland plant, which opened in 1986, employs 7,000 workers, producing around 2,000 cars a day. Other Nissan models built at the site include the Qashqai, Juke, Q30, Note, and the zero-emission electric Leaf. Week showing car production slumped by almost a 10th this past year The decision follows statistics last, leaving the industry on ‘red alert’ amid continuing Brexit doubt.
The Society of Motor Manufacturers and Traders (SMMT) said investment experienced effectively ‘stalled’ amid concerns on the UK’s future trading prospects with the EU. Over 1 Just.5 million cars left UK factories in 2018, a 9.1% decrease on the previous year, and the lowest for five years. Production of diesel vehicles was down by 22% to 561, years 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 risk of disruption to production at its Swindon factory after the UK leaves the EU.