The Strategist

Nissan to stop production of X-Trail in the UK

02/04/2019 - 10:59

Japanese automaker Nissan Motor Co. abandoned plans for production of SUVs X-Trail at a factory in the UK, pointing out at uncertainty around Brexit, Bloomberg reports.

Rian Castillo
Rian Castillo
"We understand that this will be a disappointment for our British team and partners," said Gianluca De Ficchy, head of the European division of Nissan on Sunday.

“Although we made this decision for business reasons, the continuing uncertainty around the UK’s future relations with the EU does not help companies such as ours plan the future,” he said.

Nissan's decision creates additional difficulties for the British car industry, investments in which fell by 46% last year. Automakers postponed decisions to modernize equipment and factories amid growing concerns about the UK leaving the EU without an agreement.

Nissan decided to produce SUVs at a factory in Sunderland two years ago, after it received government promises of access to the EU.

The Japanese group’s statement does not specify reasons for the refusal to release the X-Trail in Sunderland. According to Sky News, the decision is associated with stricter emission rules, as well as lower sales forecasts.

About 7 thousand people work at the Nissan plant in Sunderland. It produces, in particular, electric Nissan LEAF.

According to the British Society of Motor Manufacturers and Traders, car production in the UK in 2018 fell by 9.1% in annual terms to 1.52 million amid uncertainty around Brexit.