In a recent announcement, leading Automobile Manufacturer Nissan has scrapped plans to create its X-Trail SUV in the United Kingdom. The move has come as a shock to British PM, who fought really hard to have model built in UK.
The auto maker said that it will make the highly advanced X-Trail at its Kyushu plant in Japan, where the variant is currently under production, enabling the company to execute cross-cutting in terms of investment during the project’s initial phase.
Nissan has taken a U-turn from a decision it took back in 2016 to develop SUV at the company’s Sunderland plant, which has 7,000 workers. These plants will resume working on the Qashqai and Juke models of the company. The X-Trail SUV decision wasn’t accompanied by any kind of layoffs related news.
In a statement, Nissan Europe Chairman Gianluca de Ficchy said that they have taken the latest decision due to some business reasons, as the on-going uncertainty related to Britain’s future bond with the European Union continue to leave companies baffled about future moves.
With less than 60 days left for the Brexit, Britain hasn’t come up with any deal for an orderly Brexit, so far. The forthcoming Brexit has led to rigorous concerns in across businesses in UK, which are afraid of the UK moving out of the bloc without reaching on a separation agreement, a scenario which economists say would have a bad impact on the Britain economy.
Nissan has changed its plan after the company officials received a letter by the government which offered undisclosed reassurances related to the government’s ability to compete in the forthcoming years.
The automaker has changed its mind only a few days after the UK carmakers released a clear assessment related to the impact of Brexit on the automotive industry. The Society of Motor Manufacturing said that the investment in the industry declined 46% in 2018, and the new model production reached on 1.52 million vehicles after falling 9.1%, partially due to the Brexit concerns.
Mohit Loshali, an experienced campaigner, writes about the latest evolutions and trends in the automotive and allied domains. He has helped clients from across the globe with his thought-provoking research and analysis.