Nissan scraps plan to build new X-Trail model in Britain

Sunderland MP Julie Elliott

The letter makes clear that in return for the full £80 million ($104 million), Nissan would need to "allocate production" of its Qashqai and X-Trail sport utility vehicles to Sunderland.

Commenting on the letter a spokesperson for Nissan said that it "shows Nissan and the United Kingdom government's continued desire to support investment in the United Kingdom and maintain Sunderland as one of Nissan's manufacturing hubs in Europe".

Britain's business minister Greg Clark said the announcement was a "blow to the sector and the region".

In a report that was published by Sky News, the executives of the auto company are scheduled to make the said announcement on Monday.

Vince Cable, leader of the opposition Liberal Democrats, told Sky News the prime minister must stop "playing chicken" with Parliament and the European Union by threatening a no-deal Brexit.

Kainos's success since Britain voted to leave the European Union has put it in the FTSE All-Share Index's top 10 best performing equities since the June 23 vote.

The chairman of Nissan Europe, Gianluca de Ficchy said: 'We appreciate this ...

Nissan had pledged to manufacture the new SUV model in the United Kingdom four months after the referendum - a move seen as a major vote of confidence in the country's manufacturing outside the EU.

Nissan Europe chairman Gianluca de Ficchy said in a statement on Sunday: "We appreciate this will be disappointing for our United Kingdom team and partners".

A source told Reuters at the time that Nissan received a letter from the government promising extra support in the event that Brexit hit the competitiveness of the Sunderland plant.

"It's why when I return to Brussels I will be battling for Britain and Northern Ireland, I will be armed with a fresh mandate, new ideas and a renewed determination to agree a pragmatic solution that delivers the Brexit the British people voted for, while ensuring there is no hard border between Northern Ireland and the Republic of Ireland", she added.

Ministers had offered Nissan 60 million pounds in a bid to attract the investment.

The Government is also believed to have outlined a support package. "Clearly we will be reviewing it in the light of this decision", a government source told the newspaper. He said, 'A model like X-Trail is manufactured in multiple locations globally and can, therefore, be re-evaluated based on changes to the business environment.

Current production in Sunderland includes the Nissan Leaf, Europe's best-selling electric vehicle, which reached a record 46,989 units last year, up 177 per cent from the previous year, according to the company.

X-Trails will now be exported to Europe under the recently struck EU-Japan trade deal which allows cars to be sold here under low tariffs. Brexit uncertainty has since prompted consternation in some boardrooms in Tokyo.

The automaker originally planned to make the fourth-generation X-Trail in its United Kingdom plant, as announced in 2016.

As well as manufacturing it in Japan, Nissan also makes the X-Trail in China and Russian Federation.

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