Japan's Nissan to cancel plans of X-Trail model in UK

Japan's Nissan to cancel plans of X-Trail model in UK

The auto industry of the United Kingdom is set to endure yet another blow in the coming week when Nissan announces that it will be cancelling the plans of the company to manufacture its X-Trail model at its Sunderland plant.

It's a blow for Sunderland - although it's likely to mean no additional jobs, rather than affecting current staff - and most will doubtless blame the Brexit mess for the decision.

The factory in Sunderland, which was opened to great fanfare by former Prime Minister Margaret Thatcher in 1986, is Britain's largest with 442,000 cars built past year - nearly a third of total production in the country.

The company claims that the future models planned for production in the United Kingdom, like the next-generation Juke and the Qashqai, have been left out of the current production cut decision.

Vince Cable, leader of the opposition Liberal Democrats, told Sky News the prime minister must stop "playing chicken" with Parliament and the European Union by threatening a no-deal Brexit. The UK was presented as a convenient and agreeable base for the companies' European operations.

In a report that was published by Sky News, the executives of the vehicle company are scheduled to make the said announcement on Monday.

According to Sky News, Nissan are set to announce tomorrow (Monday 4 February) that the planned move of X-Trail production to Sunderland is to be scrapped, although it seems production of the next-generation Qashqai is safe.

"The government's mishandling of the transition away from diesel allied to the continuing uncertainty around our future trading relationship with the European Union are extremely unhelpful when the sector ought to be focussed on preparations for electrification and industry 4.0".

A report by the Society of Motor Manufacturers and Traders (SMMT) said investment had effectively "stalled" amid fears over the UK's future trading prospects with the EU.

Meanwhile, pro-EU and pro-Brexit politicians traded allegations about whether Nissan's decision not to build a new SUV in northern England was the latest sign of Brexit-induced economic damage.

Production of diesel cars was down by 22% to 561,000 previous year.

As well as manufacturing it in Japan, Nissan also makes the X-Trail in China and Russian Federation.

"The company has chose to optimise its investments in Europe by consolidating X-Trail production in Kyushu, the production hub for this global model", the company said in a statement on Sunday.

Unite's acting national officer for the automotive sector Steve Bush said he now wanted Nissan to work with their employees regarding the future.

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