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It was announced as the post-Brexit flagship agreement between the government and the auto industry.
But the bosses of the Japanese automaker Nissan will deny their commitment to build a new car model in the north-east of the country, which is a blow to the plans of the Prime Minister concerning Brexit.
The agreement to manufacture the new Qashqai and X-Trail SUVs in Sunderland was reached just a few months after the 2016 referendum and was described as a "fantastic new" by Theresa May.
The bosses of the Japanese manufacturer Nissan will deny their commitment to build a new car model in the north-east of the country, a blow to the plans of the Prime Minister concerning Brexit
She added at the time: "This vote of confidence shows that Britain is open to trade and that we remain a country open to the world, at the head of the planet".
Today, these comments will appeal to 7,000 Sunderland workers, while Nissan plans to scrap the X-Trail construction project.
Specific details should be provided tomorrow, according to Sky News, and will pose questions about the car giant's future commitment to the UK.
Last night, Bridget Phillipson, Labor MP for Houghton and Sunderland South, said: "If confirmed, it will be extremely worrying news for the Northeast economy.
"Many jobs depend on Nissan and Brexit's uncertainty has done a lot of harm to the auto sector."
This decision comes just weeks after Jaguar Land Rover and Ford announced plans to cut nearly 5,000 jobs for fear of a Brexit No Deal. Manufacturers warn ministers that leaving the EU without agreement could destroy the industry. The World Trade Organization tariffs on car exports to the mainland are 10%.
The agreement to manufacture new SUVs Qashqai and X-Trail in Sunderland was concluded just a few months after the 2016 referendum (on the photo, a worker badembling the Infiniti Q30 car)
According to Sky News, specific details are expected tomorrow, which will raise questions about the automotive giant's future commitment to the UK.
The secret deal with Nissan was concluded in 2016. Ministers declined to reveal details, insisting that it did not involve financial incentives for the company.
This was however done with the former president of the company, Carlos Ghosn, who is locked up in a Japanese prison cell.
The former shameful CEO faces accusations of tax evasion and financial irregularities, with current leaders turning their backs on him.
The elimination of X-Trail plans should not have a major impact on current factory staff, but this will likely mean that the creation of several hundred new jobs will now be suspended.
The Nissan plant is already producing the Leaf electric car and other models, including the Juke and QX30, with 440,000 vehicles coming off production lines.
The secret deal with Nissan was concluded in 2016, ministers refusing to reveal details beyond insisting that it did not involve financial incentives for the company. ;business.
The X-Trail is currently designed only for the Japanese market, but without a free trade agreement between Britain and the EU, any project Nissan plans to ship the X-Trail to Europe could be blocked .
Last night, Steve Turner, Deputy Secretary General of Unite Union, said: "We will meet the company on Monday morning. Our priority is to ensure that investment commitments are respected. & # 39;
The automotive industry has struggled in recent months, especially as diesel vehicles have lost favor with motorists. More worryingly, the investment has plummeted in the last 12 months in the UK, according to the Society of Motor Manufacturers and Traders.
Mike Hawes, general manager of SMMT, said: "Less than 60 days before leaving the EU and the risk of bankruptcy without an agreement becoming more realistic, UK Automotive is on red alert."
In January, Jaguar Land Rover announced the cancellation of 4,500 jobs in the United Kingdom, mostly in management positions, and Ford said 400 jobs would be created by its Bridgend engine plant. The aircraft builder and Airbus engine also warned that he could pull out of the UK in case of Brexit's hard. Nissan declined to comment.
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