Government 'pledged £80m to Nissan'

The Sunderland plant employs 7,000 workers but there was no mention of any layoffs relating to the X Trail decision

The Sunderland plant employs 7,000 workers but there was no mention of any layoffs relating to the X Trail decision

The auto giant, which employs 7,000 people on Wearside, said its new diesel X-Trail originally planned for Sunderland would now be made in Japan.

The government said Nissan's decision was "a blow to the sector" but that no jobs would go as a result.

Meanwhile, a government minister has said Nissan will still get its money. Addressing to an initial abandoning of X-Trail productions in Britain less than two months before a chaotic Brexit, the Sky report stated, "Precise details of Nissan's impending announcement were unclear this weekend, but sources said it was likely to initially involve abandoning the X-Trail production plans which had been announced in the autumn of 2016".

"We will set our ambitions high and vigorously pursue continued access to the European market as an objective in future negotiations", Clark pledged in the letter.

Nissan's decision to divert investment from the United Kingdom has triggered a measured reaction after the joint French and Japanese conglomerate withdrew a plan to develop a next-generation X-Trail SUV plant in the UK. He said that of £61 million worth of grants which had already been approved, only £2.6 million had so far been paid to Nissan. One of the underlying reasons for the decision was uncertainty over Brexit which was adversely affecting business, noting: "The continued uncertainty around the UK's future relationship with the European Union is not helping companies like ours to plan for the future".

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Nissan's X-Trail will not be built at the company's plant in England due to "uncertainties" surrounding Brexit.

Nissan, which builds 30% of Britain's 1.52 million cars at its factory, the country's biggest auto plant, exports the vast majority of the vehicles to European Union countries and, like the rest of the industry, is anxious about tariffs if there is a no-deal Brexit. They have reiterated today their commitment to the United Kingdom by continuing to manufacture in Sunderland the current Qashqai, Leaf and Juke models and the new Qashqai model from 2020.

Not long ago the automotive industry was the darling of a renaissance in British manufacturing, with David Cameron and George Osborne frequently found opening plants or assembly lines while in government.

But speaking alongside Japanese Prime Minister Shinzo Abe in Tokyo, she said: "We want to do everything to avoid a no-deal, because that would increase the uncertainty".

"As always, Nissan has to make optimal use of its global investments for the benefits of its customers".

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