business

Nissan's second thoughts on UK-made SUV add to Brexit worry

33 Comments
By Danica Kirka

The requested article has expired, and is no longer available. Any related articles, and user comments are shown below.

© Copyright 2019 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

©2019 GPlusMedia Inc.

33 Comments
Login to comment

A couple of things to bear in mind:

First, as the article mentions, the X-Trail has always been produced in Japan. Nissan has simply decided not to start production of this model in the UK. So, no jobs in the UK will be affected, it's just that new jobs won't be created.

Second, Jaguar Land Rover's recent move to the EU had been planned and decided long before the EU referendum. After a bit of research, it actually becomes clear that Jaguar Land Rover moved to Slovakia because of EU state aid. Even if the referendum hadn't happened, they still would have moved.

https://www.telegraph.co.uk/politics/2019/01/10/eu-rules-left-slovakia-free-entice-jaguar-land-rover-uk-110m/

What we're going to see now, is companies which have business decisions that were decided long ago, blame Brexit if they feel it will be unpopular.

As Jonathan Pie (Best Comedian out the at the moment) puts it: "Anything goes wrong, anything at all. Blame Brexit."

https://www.youtube.com/watch?v=s-x6Ct2OwOA

5 ( +12 / -7 )

.

Bringing manufacturing home.

.

Provide jobs.

.

Keep the money in Japan.

.

This is Nissan's aside to renault ,as well.

:-)

.

-6 ( +4 / -10 )

Just ask yourself; " What would Carlos have done ? "

6 ( +9 / -3 )

Tangerene2000 hit the nail on the head.....everything is blamed on Brexit. Nissan states that sales have been falling, as other manufacturers are experiencing, but they fail to also state one of the reasons is that the X-Trail emmissions do not meet strict Europian standards. Unemployment in the UK is less than 5% the avarage for EU$$R is around 9%, and the GDP is also less than the UK.

Is it a plague of locusts or frogs next?

More fake and half truth news by remoaners.

0 ( +8 / -8 )

Good move by NISSAN. Build them in Japan. Far better quality, and more jobs for Japan. Bye bye auto industry in UK.

-15 ( +4 / -19 )

@Tangerine2000

Could not have said it better. Typical scare mongering with the media complicit in not spending 5 minutes doing what you did to refute this nonsense.

May I also add the question. Exactly how many of those employed at these automotive plants in the UK are actually UK citizens? I suspect a large number are citizens of other EU member states simply working in the UK. A no deal Brexit is going to affect these people more adversely and it appears the EU is not taking any of this into account as they attempt to railroad the British into taking a deal that will effectively be worse than what they currently have being in the EU. Again its the media attempting to drum up fear over Brexit. Personally I feel Britain should go with a no-deal and be done with it which will allow them to start moving forward in a positive fashion and not stuck in this limbo. If the EU doesn't want to trade with the UK suddenly because they are not a EU member they are simply going to look like school yard bullies. The UK wants to have open and free trade with the EU, but they don't want to be told how to run their own country. Japan runs itself but manages quite successfully to trade with the rest of the world. WHY DOES EVERYONE THINK THE BRITISH CANT? They did so before the EU they will do it again they have beaten off much more than this nonsense before. How quickly many member states of the EU forgot what Britain did for them and how many of its citizens lots their lives on THEIR soil in the two biggest world wars this earth has ever experienced! Just shows!

2 ( +7 / -5 )

The people of Sunderland who voted for BREXIT, 61% of them, cannot blame anyone but themselves.

7 ( +12 / -5 )

@Ganbare Japan!

Good move by NISSAN. Build them in Japan. Far better quality, and more jobs for Japan. Bye bye auto industry in UK.

Yes brilliant. Make them move expensive by producing them in Japan and the transportation costs and conversion to stricter UK and EU emissions and import duties.

Bye bye Nissan in UK and good riddance they can't be trusted to keep to an agreement anyway or anything else it seems...just ask Ghosn!

6 ( +11 / -5 )

The people of Sunderland who voted for BREXIT, 61% of them, cannot blame anyone but themselves.

Try reading the article and then do more research than the media did. Jobs in Sunderland are fine. Nissan's factory in the area will continue to make cars, just not X-Trail. Your scaremongering media buddies love people like you that fall for their hype!

3 ( +10 / -7 )

The key point here is

But Nissan's announcement is potentially more damaging for the government because of the prominence it gave to securing the carmaker's investment in October 2016, four months after British voters decided to leave the EU.

The reassurances given by the government to Nissan have not been made public. Securing further investment from Nissan though was presented as a "triumph" and proof that Brexit would not endanger jobs. Rather than this being "second thoughts", it is Nissan cancelling something they said they would do* *after Brexit was decided but before May started negotiating it.

I suspect this might have more to do with Renault, who the article does not mention. In more worrying terms, the X Trail shares a platform with the big selling Nissan Qashqai, and Renault has a car called the Kadjar that is a Qashqai competitor and shares components with it. If the Qashqai is pulled out, Sunderland is finished.

1 ( +3 / -2 )

Exactly how many of those employed at these automotive plants in the UK are actually UK citizens?

I take it that you have never been to the North East of England.

Nissan's plant is full of people who speak unusual English, especially those from central Sunderland, but I can assure you that they are almost all UK citizens.

Howay the Toon!

6 ( +6 / -0 )

Nissan shouldn't announce it, or announce it later after the exit. Something not quite right.

-6 ( +0 / -6 )

Obviously the UK staying within the EU would have not created any uncertainty and businesses hate uncertainty.

However, that said, PM May could not have handled this any worse. She could have said, 2 years ago, that if a deal acceptable to the UK was not negotiated with the EU, then the UK would leave on WTO terms. And put it out there, 2 years ago.

But that was not what she did. Because she did not and does not believe in Brexit. Period.

This is all intended to somehow persuade the nation to unwind Brexit.

Which is what PM May wants. Because she was and is a Remainer.

1 ( +5 / -4 )

As always big companies (Japanese or non-Japanese) don't say the actual reason.

I think it's becuase of the recent Japan-EU trade deal (tax reduction in agriculture produce and also in made in Japan automobile). So no benefit in capital expenditure in UK plant.

2 ( +2 / -0 )

First, as the article mentions, the X-Trail has always been produced in Japan. Nissan has simply decided not to start production of this model in the UK. 

The X-Trail was developed by Nissan USA by modifying the 4WD Nissan pickup truck platform, resulting in a tough vehicle that could undersell Japanese competitors. I worked for Nissan's ad agency at the time preceding its debut and saw the internal correspondence when the new model was proposed.

-3 ( +2 / -5 )

More fake and half truth news by remoaners.

whats not fake is the 800billion pounds in assets flow out of the UK into the EU and its only going to increase in the coming years, yes this is most definetly from Brexit.

https://uk.reuters.com/article/uk-britain-eu-banks/assets-worth-800-billion-pounds-to-shift-from-uk-to-eu-due-to-brexit-ey-idUKKCN1P10SQ

5 ( +10 / -5 )

As @kohakuebisu reminds us, when you are brought up on Land Cruiser, Patrol and X Trail, its hard to be taken seriously considering buying a ; KADJAR or worse a name like QUASHQAI, that's never going to sell in the West.

It's a critical time for Mitsubishi/Renault/Nissan, don't make it harder then it is.

0 ( +0 / -0 )

The Brexit dividend we heard so much about?

-4 ( +2 / -6 )

Looking at the picture I see its Hybrid, a Hybrid Xtrail bit like the Hybrid Rav4, that works for off roaders if they can access a safe power outlet from the vehicle with the MQ (Patrol), we used an Inverter off the 24v (twin lead acid) to give home like 2Kw@240v, for camping, giving a point of difference is more important than where its made, yes you could blame it on Brexit, but at least keep a sensible name, not Qashqai !

1 ( +1 / -0 )

The proposed production of the new Nissan X trail diesel for EU member state is subject to World Harmonised Light Vehicle Test Procedure, Real Driving Emissions, will also be at risk of a new whole raft of emission limits.

Clean mobility: New emissions tests become mandatory for all new cars from 1 September 2018

https://ec.europa.eu/growth/content/clean-mobility-new-emissions-tests-become-mandatory-all-new-cars-1-september-2018_en

Expect EU wide punitive measures, including carbon fuel taxation to be prohibitive, but also to force existing diesel, and so called gas guzzlers off the roads.

Brexit or not.

Hi wtfjapan, the article posted is a EY estimated tracking survey.

Clients assets will not move unless its cost scalable and has a clear legislative framework that protects counterparty risk. Outside of London either New York or for instrument equity management Singapore.

https://www.esma.europa.eu/regulation/post-trading/otc-derivatives-and-clearing-obligation

This is just phase one of the Brexit blame game. On a 29th March clean break context, all 28 member states will be going hammer and tongs.

4 ( +5 / -1 )

"itsonlyrocknrollToday  01:48 pm JST

The proposed production of the new Nissan X trail diesel for EU member state is subject to World Harmonised Light Vehicle Test ProcedureReal Driving Emissions, will also be at risk of a new whole raft of emission limits."

Ah so THAT'S it, yes avoid diesel like the plague, anyway every one knows diesel can't be HYBRID

3 ( +3 / -0 )

Hi Will Goode, on my UK visits I hiring two wheeled horse-drawn, **giddy up. **

Seriously though, Brexit will cause havoc with complex supply chains.

And I am still not convinced Brexit will happen at all.

Somehow Article 50 will be extended. In fact I read even if May's bag of nails withdrawal deal worms its way though parliament there is insufficient time to pass the necessary legislation.

What a shambles, or the whole country is being played for fools.

3 ( +4 / -1 )

As an expatriot Englishman with Japanese friends whose culture I admire, I would have liked to see Nissan make some allowance for the Brexit situation and defer making a decision on where to make the new X-trail (I'd also like to have seen them not have put a CVT gearbox in then I would replaced my 2004 model in a heartbeat! ). As has been pointed out here by others, the British people are an inventive and resilient lot, and whatever the conclusion of Brexit, something would have been worked out to the advantage of both countries. After all, all the Brexiteers want to do is to cut their country free from interference by the EU, just like Nissan wants to cut its ties with Renault!

1 ( +2 / -1 )

Bye bye Nissan in UK and good riddance they can't be trusted to keep to an agreement anyway or anything else it seems...just ask Ghosn!

Yes, I guess the old business principle going back many centuries in the UK. "my word is my bond" is no longer applicable to Japan.

1 ( +5 / -4 )

So

The company said it instead plans to consolidate production of the next generation X-Trail at its plant in Kyushu, Japan, where the model is currently produced.

Then

also like to have seen them not have put a CVT gearbox in then I would replaced my 2004

Nissan had a board of eight or nine and fifty execs, in a high profile shuffle they lost two, Kelly&Ghosn, so not surprising we're getting a non decision, no change of production location, no change of name, and no clarity on drive train, coming out in everything; petrol, diesel, and petrol electric.

1 ( +1 / -0 )

Good move by NISSAN. Build them in Japan. Far better quality, and more jobs for Japan. Bye bye auto industry in UK.

Better quality in Japan! Old Hat.

Hello, to the future of the UK auto industry, with or without Nissan.

-1 ( +2 / -3 )

It's possible to argue that any negative economic consequences of Brexit, including a no-deal Brexit, don't matter and are a price worth paying to achieve other goals of Brexit. I wouldn't agree, but I recognise it as an argument. However, it is not possible to argue that this particular decision was not a direct result of the uncertainty surrounding Brexit, when that is specifically cited by Nissan as being the reason. To the extent that Nissan is now willing to forgo whatever sweetheart deal it was offered in secret by the British government in the first place as an inducement to proceed with this project. The only logical response from a Brexiter is, 'We didn't need those jobs anyway!" Let's be honest here.

-1 ( +2 / -3 )

Good move by NISSAN. Build them in Japan. Far better quality, and more jobs for Japan.

Better quality?

Subaru scandal, Mitsubishi scandal, Kobe Steel scandal, Toray scandal, Nissan scandals, TEPCO and other nuclear industry scandals, Koito aircraft seats scandal, Tanaka airbags, Olympus, Snow Brand Milk products, Daiko foods, Toshiba Accounting etc., etc.

Remind me again of better Japanese quality.....

3 ( +4 / -1 )

The only logical response from a Brexiter is, 'We didn't need those jobs anyway!" Let's be honest here.

its not the jobs that the UK has to worrk about its the Trillion + pounds of capital flow out of the UK into the EU. This is all being accelerated by the prospect of a no deal and is most certainly the result of Brexit. As all the experts were stating , UKs loss is the EU gain and no the WTO wont save the UK

0 ( +4 / -4 )

"Hello, to the future of the UK auto industry, with or without Nissan."

There's no such thing.

Britain's car industry is owned by the Japanese, Germans, French, Americans and Indians.

There won't be any future if those foreign owned plants decide to move into the EU.

2 ( +2 / -0 )

Money flows in and out of free market economies.

Plenty of money flows into the UK too....

-3 ( +0 / -3 )

Global reduction in diesel vehicle sales, not helped by VW and other car makers' fraudulent tests. If it was a Brexit issue, why not relocate to another European country?

1 ( +2 / -1 )

A large majority of Nissan's Sunderland output goes to the rest of the EU. So, it would clearly be foolish to commit to expanding production when the prospects of how to export to the EU after any Brexit remain unclear. Therefore it is most definitely and clearly a Brexit issue. There may be other factors as well but Brexit is the clincher and it is silly to pretend otherwise.

0 ( +2 / -2 )

Login to leave a comment

Facebook users

Use your Facebook account to login or register with JapanToday. By doing so, you will also receive an email inviting you to receive our news alerts.

Facebook Connect

Login with your JapanToday account

User registration

Articles, Offers & Useful Resources

A mix of what's trending on our other sites