Nissan confirms that the car model will be made in Japan instead of Sunderland

Nissan President Gianluca de Ficchy said in his letter that much has changed since the Japanese firm announced plans to build a new Qashqai and X-Trail in the UK in October 2016.

"At that time, they were both designed as" traditional "models, powered by internal combustion engines. X-Trail was already going to be manufactured in Kyushu, but it was also profitable to bring production to Europe.

"Since then, as you know, the environment of the automotive industry in Europe has changed dramatically. To comply with new emissions regulations, we had to invest a lot more in new powertrains for our future models like X-Trail. At the same time, volume forecasts for X-Trail in Europe have been reduced.

"For these reasons, the company decided to optimize our investments and concentrate production in Kyushu instead of adding another production site. For European companies, this does not change the fact that X-Trail is – and will continue to be – a crucial model for us.

"Today's announcement will be interpreted by many people as a Brexit-related decision. We made this decision for the business reasons I explained, but it is clear that the uncertainty surrounding future relations between the UK and the EU is not helping companies like ours to plan for the future. . "

The letter continued: "After the UK's weekly rapprochement on March 29, we set up a working group reporting to me that looked at all the possible scenarios and their potential impact on the business.

"As a responsible company with 16,000 employees in the region, I want you to know that we are preparing, in all functions and with our supply chain, everything that could affect our model. current market. When the time comes to launch one or the other of these projects, we will be ready and we will communicate transparently with you all. "

Nissan was still investing heavily in the new Juke model and in the new generation of Qashqai, said de Ficchy.

"Since they were originally awarded, these two models have also required significant additional investment to meet new emissions regulations and electrify their powertrains.

"The factory team always has the full confidence of the company."

The decision is a blow for Nissan workers in Sunderland (Owen Humphreys / PA)

Hideyuki Sakamoto, Nissan's executive vice president for manufacturing and supply chain management, said, "A model such as X-Trail is manufactured in many places around the world and can therefore be re-evaluated according to the 39, evolution of the economic environment.

"As always, Nissan must make the most of its global investments for the benefit of its customers."

De Ficchy said: "Nissan is investing heavily in new technologies and powertrains for the next generation of vehicles at our Sunderland facility. To support this, we leverage our global badets and, with X-Trail already manufactured in Japan, we can reduce our initial investment costs.

"We are aware that this will be disappointing for our team and our UK partners. Our staff in Sunderland has our full confidence and will continue to benefit from planned investments for Juke and Qashqai. "