Japan's Nissan abandons plans to build X-Trail model in UK

Brexit blamed for Nissan's decision to move SUV production to Japan

Labour's Long-Bailey said Nissan's X-Trail announcement was a "bitter blow" to the north-east, the automotive sector and Britain's industrial strategy.

"We appreciate this will be disappointing for our United Kingdom team and partners".

'Work continues but I understand this could amount to additional support of up to £80 million.

Meanwhile, pro-EU and pro-Brexit U.K. politicians traded allegations about whether Nissan's decision not to build a new SUV in northern England was the latest Brexit-induced damage to Britain's economy.

Sky said the announcement due on Monday was not expected to lead to immediate job losses at the Sunderland plant, as the X-Trail is not now made there, but would raise doubts about further Nissan investment in Britain.

Britain in 2016 promised Nissan up to £80 million (over €91 million) of support and vowed to protect the carmaker from any Brexit fallout, according to a confidential letter released on Monday. Nissan will need to reapply if it seeks more support, Clark said.

Gianluca de Ficchy, the chairman of Nissan Europe, explained the manufacturer's decision by citing business reasons, in particular, the decrease in diesel sales across Europe and "reduced volumes forecast" for X-Trail in Europe.

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Nissan had previously announced plans to build the model at its plant in Sunderland after the British government sent a letter of undisclosed reassurances in 2016 after the Brexit vote about the company's ability to compete in the future.

Nissan said it opposed Brexit in 2016.

Clark said in his letter: "The Government fully recognises the significance of the European Union market to your presence in Sunderland".

The business secretary offered Nissan up to £80m of "support" in a series of Brexit assurances before it committed to building new models in Sunderland. And Nissan is part-owned by France's Renault, which could move production to France in future to avoid any post-Brexit EU tariffs.

Investment in Britain's vehicle industry halved a year ago, data showed last Thursday, and auto production by Nissan in Britain fell by more than 10 per cent.

The first is the collapse in the market for diesel cars in the wake of the 2015 Volkswagen emissions scandal and in response to...

Unions expressed disappoint, as Nissan has made cars at its Sunderland plant since 1986, where it has up to 7000 employees.

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