Government reassures Nissan over free trade agreements in the EU

A GOVERNMENT bid to secure free trade agreements with the EU’s motoring industry as part of Brexit talks appears to have reassured Nissan enough for the manufacturer to commit production of the new Qashqai to the UK.

The Government has been under pressure to reveal what it promised Nissan last week in return for the company’s continued committed to its Sunderland production operation.

Business Secretary Greg Clark told the BBC’s Andrew Marr show over the weekend that he had reassured Nissan that the UK would continue to be a good place to do business and it would in no-one’s best interests to have tariffs within the motor industry.

He said he had explained that the Government’s objective was to ensure continued access to EU markets after Brexit – and vice versa – without any tariffs being imposed or red tape to overcome.

Pressed by the presenter about a letter sent to Nissan, Mr Clark said that he had explained that funds would be made available by the Government to support training and skills development initiative across the whole of the UK car industry.

This is part of a reshoring strategy aimed at bringing back more production to the UK from overseas.

Help with research and development and a rather vaguer pledge to keep the UK car industry more competitive were also outlined.

In truth, this is nothing the Government hasn’t already been doing for some time – although Mr Clark said what had been proposed was not general.

Regardless of content, whatever the Government said it had the desired effect.

Nissan had pledged to produce the new Qashqai at Sunderland as well as the new X-Trail.

In doing so, the jobs of 7,000 people directly employed at the Sunderland plant have been secured and around 28,000 in the wider supply chain – which includes the West Midlands – have also been safeguarded.

The Government – and the UK car industry in general – is hopeful the show of faith by Nissan will reassure others that the UK remains a great place to build cars.

One company which will have been keeping a close eye on developments is General Motors. It may be seeking similar assurances from Mr Clark in the not too distant future when it begins deliberations on where production of the next Vauxhall Astra should take place.

The current model is produced at the firm’s plant in Ellsmere Port and a pledge to build the new car there would be a further shot in the arm to both the UK car industry and the wider economy in general.