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Nissan warns future of UK car plant hinges on Brexit talks Nissan warns future of UK car plant hinges on Brexit talks
(about 5 hours later)
The chief executive of Nissan has warned that future investment decisions about the company’s car plant in the north-east of England will depend on the outcome of Brexit negotiations.The chief executive of Nissan has warned that future investment decisions about the company’s car plant in the north-east of England will depend on the outcome of Brexit negotiations.
Carlos Ghosn said he was “reasonably optimistic” that common sense would prevail and the UK will remain a key partner of the EU.Carlos Ghosn said he was “reasonably optimistic” that common sense would prevail and the UK will remain a key partner of the EU.
The boss of Nissan, which employs 6,700 car workers at the plant in Sunderland, was speaking just 24 hours after new car sales figures showed previous strong growth had come to an abrupt halt in July amid uncertainty following the EU referendum vote.The boss of Nissan, which employs 6,700 car workers at the plant in Sunderland, was speaking just 24 hours after new car sales figures showed previous strong growth had come to an abrupt halt in July amid uncertainty following the EU referendum vote.
Related: Growth in new UK car sales slows in July
Ghosn said most companies would want to see what was going to happen in trade and other talks between Britain and the EU before making decisions about future investment in Sunderland.Ghosn said most companies would want to see what was going to happen in trade and other talks between Britain and the EU before making decisions about future investment in Sunderland.
“Well I don’t think today you can talk about any impact before we see what is the new status of the UK. The question of Sunderland … Sunderland is a plant which is a European plant based in the UK,” he told the BBC.“Well I don’t think today you can talk about any impact before we see what is the new status of the UK. The question of Sunderland … Sunderland is a plant which is a European plant based in the UK,” he told the BBC.
“Most of the production out of Sunderland is exported to Europe. So obviously for us the relationship which is going to prevail between the UK and Europe is very important … So you’re going to see a period where most companies are going to be waiting to see what’s going to be the new status.”“Most of the production out of Sunderland is exported to Europe. So obviously for us the relationship which is going to prevail between the UK and Europe is very important … So you’re going to see a period where most companies are going to be waiting to see what’s going to be the new status.”
Ghosn was speaking from Brazil, where his company is a key sponsor of the Olympic Games. He added: “We’re reasonably optimistic that at the end of the day common sense is going to prevail from both sides … [that the] UK will still continue to be a big partner of the European community.”Ghosn was speaking from Brazil, where his company is a key sponsor of the Olympic Games. He added: “We’re reasonably optimistic that at the end of the day common sense is going to prevail from both sides … [that the] UK will still continue to be a big partner of the European community.”
Nissan, like other British car manufacturers, had argued strongly for Britain to remain in the EU. However, Sunderland had one of the highest votes in favour of leaving – six out of 10 people.Nissan, like other British car manufacturers, had argued strongly for Britain to remain in the EU. However, Sunderland had one of the highest votes in favour of leaving – six out of 10 people.
Car manufacturing in the north-east and in other parts of the UK has been highly successful over the past decade due to heavy investment by a series of mainly foreign companies including Japan’s Toyota, India’s Tata (Jaguar Land Rover) and Germany’s BMW (Mini). But there are fears that many of these firms, such as Nissan, could retreat if access to the EU is in any way restricted.
A spokesman for the North East Chamber of Commerce said the government must ensure that local employers do not miss out as a result of any new post-Brexit trading arrangements. “Nissan is a huge player in the region and makes up a huge part of our exports and we need to see long-term investor confidence in the north-east and to be seen as a desirable location for exporters,” the spokesman said.
Paul Watson, leader of Sunderland city council, said it was good to hear Ghosn was cautiously optimistic but added he had concerns manufacturing in the north-east would not be a priority compared to the City of London during Brexit negotiations.