Nissan is “satisfied” with the trade deal agreed between the UK and the European Union, according to the firm’s UK managing director.
In a letter sent to dealer managers late last week and seen by Autocar, Andrew Humberstone outlined that the deal “finally gives us some certainty and enables us to plan for the future success of our collective operations across the region”.
Nissan’s Sunderland plant was previously described as “unsustainable” In the event of a no-deal Brexit by the company’s global chief operating office, Ashwani Gupra. But the future of the factory, which employs 7000 people and has recently received a £400 million investment to build the upcoming third-generation Qashqai, now looks more secure.
Sunderland “will continue to build cars despite the UK lockdown”, Humberstone revealed, after an overhaul of the factory’s operations during the first lockdown last year. The factory also builds the Nissan Juke crossover and Nissan Leaf electric hatchback.
Humberstone also claims Nissan's future in Europe is “strong”, countering reports that the Japanese manufacturer will gradually reduce its presence in what is one of the world’s toughest new car markets.
“The brand will continue to follow the Nissan Next plan and deploy it in Europe, and any speculations counter to this are baseless and inaccurate," he wrote. "This strategy is supported by our two pillars of electrification and out crossover line-up.”
The MD went on to list the arrival of the new Qashqai and the Ariya electric SUV during this year as two opportunities to bolster sales. Nissan UK itself managed to increase its market share despite a 22% reduction in registrations, reflecting even deeper falls from other companies.
Nissan Next, a three-year transformation plan announced earlier this year, will have the company work to substantially reduce is fixed costs and reduce production capacity by 20% globally. Growth strategies will be focused on Japan, China and North America, with business to be “sustained” in Europe but focused on core model segments: higher-margin models, such as SUVs.
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Sunderland is saved for the moment, but his reference to Europe is more telling. Future investment will be gonig to the EU, not UK, as the ratio of foreign parts in cars reduces from the 60pc in the deal to 40pc in the next few years.
Those in Sunderland did vote to close Nissan though.
He stated "EUROPE" not the EU, the United Kingdom is part of Europe, and can you please show me exactly where Sunderland voted to close Nissan.
I'm sure you know why Nissan set up in the UK.
And Sunderland voted to be out of the EU.
I think you will find the UK voted to leave the EU, perhaps you missed that.. However we didnt leave Europe, do you need some geography lessons. Four and half years and still crying..
We have left, get over it.
The EU voted to close Japanese manufacturer's factories across the EU. Current tariffs of cars from Japan is 7% and by 0% by 2026. The Japanese would rather build cars in their own country and support their own workers rather than Europe.
EU continues to shoot itself in the foot time and time again. Some people are too blind to see it.
Japan is a high cost manufacturing centre. The European plants offer them potentially lower costs, and with the market right on the doorstep of the factory. Huge benefits.
And an available workforce. There are struggles to find workers in Japan to fill those factories.
Nissan may be satisfied enough to keep the plant open for now but it doesn't mean they are happy enough to want to invest in it's longer term future. The acid test with Brexit will be to see over the next few years whether investment into the U.K. from abroad ever gets back to pre referendum levels. My suspicion is that it won't.
Brexit is best though of as boiling a frog. If you put a frog in boiling water it will leap straight out, but if you warm it up gradually it will just boil to death. We are being slowly cooked.
So is that to say that investment levels would have remained the same or increased if we'd stayed in Europe?
The investment levels in Honda, Ford, Vauxhall, Peugeot, Talbot, Leyland trucks, TVR, Wrightbus etc etc etc didn't seem to turn out too well whilst were in the EU, in fact to quote someone else on this thread, the reason Honda left the UK was due to a renegotiated deal by the EU and Japan.
PS - just noticed your name Tsag - Triumph, now there's another blast from the past. How much investment did Triumph receive from the EU? I believe their last car was the Acclaim which was killed off in 1981.
Now that Nissan is "satisfied" with the "B" outcome, I just wonder what excuse PSA will use when they close Ellesmere Port. The next Vauxhall Astra will be exclusively made in Germany, & they have got no new model planned for the UK. They just can't say "B" made it uneconomic to build in UK, & they can't also use that slogan; "British Brand since."
It hasnt been a British Brand since 1925 when it was purchased by General Motors of America..