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Government letter to Nissan reveals Brexit promise to carmarkers Government letter to Nissan reveals Brexit promise to carmarkers
(34 minutes later)
The business secretary promised Nissan in 2016 that supporting carmakers would be “a critical priority” in the Brexit talks, in a previously confidential letter released by the company after it abandoned plans to produce a new model in Sunderland. The business secretary promised Nissan in 2016 that supporting carmakers would be “a critical priority” in the Brexit talks, in a previously confidential letter released after it abandoned plans to produce a new model in Sunderland.
Greg Clark also pledged on behalf of the government in the letter to ensure manufacturers’ “ability to export to and from the EU is not adversely affected by the UK’s future relationship with the EU”.Greg Clark also pledged on behalf of the government in the letter to ensure manufacturers’ “ability to export to and from the EU is not adversely affected by the UK’s future relationship with the EU”.
Nissan was told that its own operations would not be “adversely affected” by Brexit in a letter first disclosed to the Financial Times.Nissan was told that its own operations would not be “adversely affected” by Brexit in a letter first disclosed to the Financial Times.
The promises cannot currently be met because no Brexit deal has been struck with the European Union.The promises cannot currently be met because no Brexit deal has been struck with the European Union.
Over the weekend Nissan said it would no longer manufacture the new model X-Trail SUV in Sunderland, stopping a planned expansion. The company said “the continued uncertainty” over Brexit was one of the factors in its decision.Over the weekend Nissan said it would no longer manufacture the new model X-Trail SUV in Sunderland, stopping a planned expansion. The company said “the continued uncertainty” over Brexit was one of the factors in its decision.
‘It isn't just Nissan, it’s all the jobs’: how the carmaker's U-turn hit Sunderland‘It isn't just Nissan, it’s all the jobs’: how the carmaker's U-turn hit Sunderland
The letter, which the government has repeatedly refused to release, promised financial support of about £80m towards Nissan’s investments at the site in return for the expansion of production.The letter, which the government has repeatedly refused to release, promised financial support of about £80m towards Nissan’s investments at the site in return for the expansion of production.
Clark is understood to be unhappy with reports on Monday morning that the £80m package could now be scrapped, as he does not want to further antagonise Nissan, according to sources at the Department of Business.Clark is understood to be unhappy with reports on Monday morning that the £80m package could now be scrapped, as he does not want to further antagonise Nissan, according to sources at the Department of Business.
The minister has repeatedly warned of the dangers of a no-deal Brexit, and wants the government to rule it out soon if parliament cannot agree on a deal with the European Union.The minister has repeatedly warned of the dangers of a no-deal Brexit, and wants the government to rule it out soon if parliament cannot agree on a deal with the European Union.
Nissan said in a statement that the letter showed both the company’s and the government’s “continued desire to support investment in the UK and maintain Sunderland as one of Nissan’s manufacturing hubs in Europe. The letter is no longer commercially sensitive as it contains nothing that hasn’t been disclosed publicly before, and the projects referenced in the letter have now changed.”Nissan said in a statement that the letter showed both the company’s and the government’s “continued desire to support investment in the UK and maintain Sunderland as one of Nissan’s manufacturing hubs in Europe. The letter is no longer commercially sensitive as it contains nothing that hasn’t been disclosed publicly before, and the projects referenced in the letter have now changed.”
BrexitBrexit
NissanNissan
Automotive industryAutomotive industry
Greg ClarkGreg Clark
ConservativesConservatives
European UnionEuropean Union
Foreign policyForeign policy
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