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Brexit blamed for Nissan's decision to move SUV production to Japan

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Why Brexit uncertainty means companies plan for the worst

Nissan said yesterday that its decision not to produce the X-Trail at the plant was for business reasons, but added that "the continued uncertainty around the UK's future relationship with the European Union is not helping companies like ours to plan for the future".

The woman responsible for the hi-tech academy training the North East automotive engineers of the future has urged the Government to give businesses a clear lead on Brexit after Nissan scrapped plans to build a new X-Trail in Sunderland.

Japanese auto manufacturer Nissan has confirmed it is scrapping plans to build a new model in the English city of Sunderland, citing uncertainty over Brexit and further highlighting employers' fears of a no-deal departure by the United Kingdom from the European Union.

While Nissan's decision to keep X-Trail production in Japan will have no immediate effect on jobs in Britain, it represents the cancellation of increased capacity in Sunderland and the creation of a so-called "super site", which local component makers had been gearing up to supply.

According to a letter written by Nissan Europe chairman Gianluca de Ficchy to workers, the X-Trail will continue to be made in Japan, Sky News reported on Sunday. But it's not expected to be the last as Brexit uncertainty bites.

The company said it instead plans to consolidate production of the next generation X-Trail at its plant in Kyushu, Japan, where the model is now produced. It will instead produce the X-Trail in Japan. The factory in Sunderland exports more than 80% of the cars produced and 50% to Europe.

The planned new production would have created 741 new jobs directly with more in allied areas, one assumes.

The factory in Sunderland is where Nissan builds the Qashqai, the Juke, the Leaf and the Inifitini Q30 and QX30.

Clark said in the 2016 letter that government had already been able to confirm £22m of support for the foundry at Sunderland to become a European development centre for the firm's alliance with fellow carmakers Renault and Mitsubishi. If the company itself isn't saying that Brexit is the main driver here, shouldn't we believe it?

Nissan had given some of the comments regarding its decision by saying that since the year 2016, the vehicle industry has been facing a changed environment in Europe dramatically which included the change in emissions of the regulations.

German Chancellor Angela Merkel also said the agreement couldn't be renegotiated, although questions surrounding border arrangements could be addressed in a declaration on the future relationship between the European Union and Britain.

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