Business

Report: Nissan to cancel plans to build X-Trail in Britain

LONDON Japanese car manufacturer Nissan announced yesterday it was cancelling plans to build its X-Trail SUV at its plant in northeast England despite Brexit assurances from the government.

"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," Nissan Europe Chairman Gianluca de Ficchy said in a statement. "We appreciate this will be disappointing for our UK team and partners," he added. "Our workforce in Sunderland has our full confidence."

The car giant announced in 2016 that it planned to build the model at its plant in Sunderland, but will now assemble it at Nissan's global production hub in Kyushu, Japan. Other future models planned for the Sunderland plant remain unaffected, Nissan said. It said it decided to shift investment away from the British plant, and towards developing vehicle technology.

"A model like X-Trail is manufactured in multiple locations globally, and can therefore be re-evaluated based on changes to the business environment," said Mr Hideyuki Sakamoto, Nissan's executive vice president for manufacturing and supply chain management.

Local MP Bridget Phillipson, tweeted that the reports "represent deeply troubling news for the north east economy - So many jobs and livelihoods depend on Nissan's success" .

- REUTERS

BUSINESS & FINANCE