LONDON: Japanese carmaker Nissan will build two new models in Britain despite the vote to quit the EU, giving Prime Minister Theresa May her most important corporate endorsement since the Brexit referendum in June.
The decision to build the next generation of its popular Qashqai and X-Trail SUVs at Britain’s largest car plant, rather than elsewhere in Europe, was won with what a source described as a government promise of extra support to counter any loss of competitiveness caused by Britain leaving the EU.
“This vote of confidence shows Britain is open for business and that we remain an outward-looking, world-leading nation,” May said.
Nissan employs more than 7,000 people in Sunderland, where it built nearly a third of Britain’s 1.6 million cars last year.
May’s spokesman said Nissan was offered reassurances that conditions would remain competitive, but was not given explicit promises to compensate for any tariffs that might be imposed once the country leaves the bloc. Such a step could potentially open the floodgates to ultimatums from other companies.
Britain’s big carmakers are nearly all foreign-owned and ship more than half of their exports to the other 27 countries in the European Union, making the industry’s future one of the big question marks hanging over Britain’s plan to quit the bloc.
The major car companies and their labour unions had collectively warned that the June vote would make Britain a less attractive destination for foreign investment. Nissan in particular had threatened to halt spending unless the government guaranteed it would be protected.
Chief executive Carlos Ghosn, who met May earlier this month, said the British government had promised to ensure the competitiveness of the plant.