The Nissan logo is seen at Nissan Motor's global headquarters building in Yokohama, Japan. Picture: REUTERS/Kim Kyung-Hoon
The Nissan logo is seen at Nissan Motor's global headquarters building in Yokohama, Japan. Picture: REUTERS/Kim Kyung-Hoon
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London — Carmaker Nissan has scrapped plans to build its new X-Trail SUV in Britain, saying it took the decision to consolidate production in Japan and warning two months before Brexit that uncertainty was making it harder to plan for the future.

Nissan said four months after Britain voted to leave the EU in June 2016 that it would manufacture the new X-Trail in Britain, which was seen as a major vote of confidence in the country and then new Prime Minister Theresa May.

A source said that Nissan received a letter from the government at the time promising extra support in the event that Britain’s departure from the EU hit the competitiveness of its north of England Sunderland plant.

But on Sunday, Nissan, which operates Britain's single-biggest car factory where it builds about 30% of the country’s 1.52- million cars, said it was reversing that decision.

“The company has decided to optimise its investments in Europe by consolidating X-Trail production in Kyushu, the production hub for this global model,” the company said.

"While we have taken this decision for business reasons, the continued uncertainty around the UK’s future relationship with the EU is not helping companies like ours to plan for the future," said Europe chair Gianluca de Ficchy.

The company said planned investment in the next-generation Juke and Qashqai, also announced in 2016, was unaffected.

In 2018 Nissan cut hundreds of jobs at the Sunderland factory in response to declining demand for diesel models. Production at the site fell 11% in 2018.

Reuters