Nissan to start out constructing new Juke automotive at UK plant as Brexit looms

By Costas Pitas

SUNDERLAND, England, Oct 10 (Reuters) – Nissan stated it would start making the next-generation Juke car at Britain’s largest automotive plant on Monday, simply over two weeks earlier than a doable no-deal Brexit which the trade has warned may convey manufacturing to a halt.

Nissan determined in 2015, earlier than the 2016 referendum was even held, to make the newest model of the game utility car at its northern English Sunderland manufacturing facility, reflecting how main choices are made years upfront.

The Japanese firm, which was inspired by Prime Minister Margaret Thatcher within the 1980s to make use of Britain as a gateway to the Continent, has spent 100 million kilos on the newest funding in Juke with 70% of the output for EU markets.

“Thirty-five years in the past Nissan determined to create a plant within the UK to serve our European markets,” stated Nissan’s Europe Chairman Gianluca de Ficchy on Thursday.

“The brand new Juke represents an extra 100 million pound funding in our Sunderland plant and is designed, engineered and manufactured within the UK for European prospects,” he added.

The manufacturing facility can also be as a result of construct the brand new Qashqai mannequin from subsequent yr however the agency has beforehand stated it may evaluate that 2016 resolution particularly if there’s a change to “free commerce agreements.”

Nissan’s then Europe manufacturing boss Colin Lawther informed lawmakers in 2017: “As these circumstances change – and we won’t wait till the tip of the method – we’ll regularly evaluate the choices that we take primarily based on something that materially adjustments.”

Prime Minister Boris Johnson has stated he’s ready to take Britain out of the European Union with out an settlement however is searching for a take care of the bloc, though time is working out to safe an orderly departure earlier than the Oct. 31 deadline.

The automotive trade fears {that a} no-deal Brexit will add tariffs on autos, engines and elements in addition to introduce customs delays which may quickly cease manufacturing and threat the long-term viability of British websites.

Ministers have stated they’re ready for a no-deal end result and will assist affected sectors. Brexiteers have lengthy argued that Europe’s largest economic system, Germany, which exports tons of of 1000’s of vehicles to Britain every year, would shield that commerce.

Nissan is ending the evening shift on the Sunderland plant and the general headcount of workers might be somewhat decrease at round 6,000 because it focuses on ramping up the brand new car. (Enhancing by Stephen Addison)

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