The Strategist

Nissan to focus on UK instead of EU


02/03/2020 - 09:58



According to FT, the Japanese automaker has prepared a plan to concentrate on the British market, in case Brussels and London do not agree on duties.



Mike Mozart
Mike Mozart
The plan involves abandonment of production activities in Spain and in France. Thus, the company will make a u-turn relative to previous plans, because in October last year Nissan warned that if an agreement was not reached between London and Brussels, the company would refuse to produce the Qashqai model at the plant in the English Sunderland, and after all, cars of this models accounted for ⅔ of machines produced at the enterprise. The Sunderland plant is the largest in the UK: 440 thousand cars go out from its conveyors, half of which are exported to the EU.

The publication’s interlocutors said that now Nissan is considering the closure of the plant in Barcelona and the cessation of activities in France. In particular, it is planned to transfer the production of the Micra model to the UK from there. In addition, the production of the X-Trail model may move to Sunderland, although last year the company announced the abandonment of plans for the production of these crossovers in England. In addition, it is planned to reduce the supply of parts from the EU, which may be subject to the proposed duties, especially since Nissan intends to abandon Renault diesel engines.

FT sources explain that the introduction of high import duties on cars in the United Kingdom will raise prices for American cars, in particular for Ford, as well as for products of the German concern Volkswagen. This will play into the hands of Nissan, pushing up the competitiveness of the Japanese automaker and allowing it to increase its share in the British market from 4% to 20%.

source: ft.com




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