Japan's Nissan abandons plans to build X-Trail model in UK
Updated 14:23, 04-Feb-2019

Japanese carmaker Nissan confirmed it had abandoned plans to build the new model X-Trail in Sunderland, Britain, which was described as “troubling news” by local officials. 

According to a letter written to workers by Nissan Europe chairman Gianluca de Ficchy, the X-Trail will continue to be made in Japan, Sky News reported on Sunday. 

Ficchy said Brexit uncertainty had played a part in the decision, added that "We have taken this decision for the business reasons I've explained, but clearly the uncertainty around the UK's future relationship with the EU is not helping companies like ours to plan for the future."

"With the UK's departure from the EU on March 29th getting closer every week, we have a task force in place, reporting to me, that it is considering all of the possible scenarios and the potential impact on business," he said.

He said the workforce in Sunderland will continue to benefit from the investment planned for Juke and Qashqai.

Nissan employs around 7,000 people in Sunderland. The X-Trail production plans had been announced in the autumn of 2016. 

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

Her another statement on Twitter said, "I fear this announcement is only the beginning." 

Local MP Bridget Phillipson's Twitter.

Local MP Bridget Phillipson's Twitter.

The car giant is a major employer in the region, a former industrial powerhouse that has suffered decades of economic decline, and which voted heavily in favor of Brexit.

Other multinational giants including Airbus warned this week that British jobs could suffer in the event of an unfavorable Brexit outcome.

Source(s): AFP ,Xinhua News Agency