Nissan backs Brexit Britain by ploughing £400m into Sunderland plant

Nissan backs Brexit Britain by ploughing £400m into its Sunderland car plant

Nissan is ploughing £400million into its Sunderland car plant in a vote of confidence in Brexit Britain.

The Japanese car maker yesterday unveiled a £52million production press line – the investment centre-piece – which will build the new Qashqai SUV.

The tailor-made, 2,000-tonne press has taken 18 months to install and is due to start producing Qashqais in 2021.

Nissan yesterday unveiled a £52m production press line – the investment centre-piece – which will build the new Qashqai SUV

The commitment will be welcomed by the Sunderland plant’s 7,000 workforce, which also help produce Juke and Leaf models.

Nissan had repeatedly said Brexit could threaten the future of its British operations if the UK leaves the EU without a trade deal, as this would impose a 10 per cent tariff on cars.

Although leaving without a deal is unlikely, it is still possible. In the run-up to Brexit deadlines last year, Nissan joined other car makers in warning that any delays at borders would also put the industry’s ‘just-in-time’ business model at risk.

Nissan has struggled financially in the wake of the ousting of its former boss Carlos Ghosn. Last month, Nissan reported a third-quarter loss of £183million – down from a profit of £510million a year earlier.

Vehicle sales fell in Japan, the US, Europe and China, where turnover is likely to have tumbled since January in the wake of the coronavirus outbreak.

Ashwani Gupta, the company’s operations chief, said: ‘When the first Nissan Qashqai rolled off the line in Sunderland in 2006 it created the crossover segment.

‘Designed, engineered and made in the UK, and more than 3m vehicles later it remains the benchmark.’

Steve Bush, of the union Unite, said the reaffirmation of the £400million investment ‘is a welcome confidence booster and a big vote of confidence in the workforce.’

Jaguar in reverse as China sales dry up  

A sharp drop in new car sales in China will knock annual profits at Jaguar Land Rover (JLR).

The company’s sales fell by 85 per cent in China last month as a result of the coronavirus outbreak.

Between June and December last year, JLR’s sales in China rose 25 per cent compared with the year before, making it a key market.

Sales have generally been falling and Britain’s biggest car maker is going through a huge cost-cutting drive.

JLR’s owner Tata Motors said profit margins would fall by about 1pc in its financial year, which runs to March 31.

 

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