Automotive industry hails Nissan’s commitment to the UK
NISSAN has delivered a major shot-in-the-arm to the UK automotive industry by confirming it will build the next-generation Qashqai at its plant in Sunderland.
Thousands of jobs both at the plant and in the supply chain wrested on the company agreeing to continue using the production facility in the North East.
The move was considered the first test since Brexit of the commitment to the UK by foreign carmakers.
Nissan said it had reached its decision following a meeting of its executive committee. The decision follows a commitment by the Government to ensure that the Sunderland plant remains competitive.
Confirmation of the Government’s backing was followed by an announcement from Nissan that it would increase its investment into the Sunderland plant, directly securing the jobs of 7,000 workers.
But there was better news as well.
In addition to the new Qashqai, the company has confirmed it will add production of the next X-Trail model to those produced at Sunderland.
The extent of the Government’s commitment is not clear at this stage, although it has said there is no financial compensation involved.
Carlos Ghosn, chairman and CEO of Nissan, said: “I am pleased to announce that Nissan will continue to invest in Sunderland. Our employees there continue to make the plant a globally competitive powerhouse, producing high-quality, high-value products every day.
“The support and assurances of the UK government enabled us to decide that the next-generation Qashqai and X-Trail will be produced at Sunderland. I welcome Prime Minister Theresa May’s commitment to the automotive industry in Britain and to the development of an overall industrial strategy.”
Coventry-based Brose UK is among the hundreds of UK firms which supply the giant factory.
It hailed the decision as a clear statement of intent and one which would spread confidence throughout the sector.
Juergen Zahl, managing director, said: “This is very pleasing news. It will help the supply chain plan its own investment in new technology, capacity and people to ensure we can meet the requirements of future new model introductions.”
Mike Hawes, SMMT chief executive, said: “Today’s announcement is good news for UK Automotive and jobs, confirming Britain as a leader in automotive production. To secure this position, however, we need government to provide public assurance to investors that our advantages will be maintained – namely, a competitive business environment, the ability to recruit talent from abroad and the continuation of all the benefits of the single market as we leave the EU.”
Nissan’s Sunderland plant opened in 1986 and has produced almost 9 million cars since. One in three British cars are produced in Sunderland, which is the UK’s largest car plant of all time. In addition, 80% of production from Sunderland is exported to over 130 international markets. More than 2 million Qashqai’s have been built in Sunderland in less than 10 years. In addition to the 7,000 direct employees at Sunderland, the plant supports a further 28,000 British automotive supply chain jobs. To date, Nissan has invested more than £3.7bn in Sunderland.
