Nissan may review production of the Qashqai at its Sunderland plant in the event of a no-deal Brexit; raising new concerns for thousands of workers…
Qashqai Under Review
Production of the Nissan Qashqai is under review at the company’s Sunderland plant. In the event of a ‘no-deal’ Brexit scenario, it may cease entirely. That’s according to reports in the Financial Times. Around 7,000 workers are employed at the Wearside facility and many more in the local supply-chain. Thanks to a deal struck between the automaker and Theresa May in 2016, the future of the model was thought to be secured. However, the basis of the deal was based on the understanding that the UK would negotiate a deal. Internal corporate politics may also be playing a role, too. Carlos Ghosn oversaw the deal. But in 2018 he was arrested by Japanese authorities for alleged financial misconduct. May has also been replaced by the strident Brexiteer Boris Johnson.
The details of the deal included £80 million in government funds. Plus a commitment to produce the new X-Trail SUV model at the Sunderland plant. Earlier this year, however, Nissan announced that the model would be manufactured elsewhere citing economic uncertainty (some of which was caused by Brexit).
No Changes Yet
Despite the review, Nissan has made it clear that no changes have been agreed upon yet. It said that plans for the Qashqai “had not changed” and that it was “waiting for clarity” concerning the UK’s relationship with the EU. That said, the Japanese automaker relies on largely frictionless trade between the UK and Brussels as a part of its business model. Loss of the Qashqai would have a tremendous impact on the facility and its workforce, which accounts for most of the vehicles made there. That said, the company has recently announced that the second generation of the Juke model will be assembled at the site, perhaps calming some nerves.
The Financial times has stressed the fears amongst the automotive industry concerning a no-deal departure. Recently, a pan-European group of car manufacturers jointly claimed that such a scenario would “devastate” the industry across the continent. Some analysts have suggested that it would cost the UK’s automotive industry £4 billion each and every year. Other manufacturers have also made it clear that stockpiling parts and components isn’t a feasible solution for volume production. That said, some have mentioned future investment on the basis of a deal being struck with Brussels. The French Groupe PSA has pledged to build the next Astra at Ellesmere if a suitable deal is reached.
Nissan Will Cut 10,000 Jobs, Raising Fears For Sunderland Workers – https://autoserve.co.uk/motoring-news/nissan-will-cut-10000-jobs-raising-fears-for-sunderland-workers/
Jaguar Land Rover Boss Says Brexit Stockpiling ‘Not An Option’ – https://www.autoservefleet.co.uk/latest-news/jaguar-land-rover-boss-says-brexit-stockpiling-not-an-option/