Nissan’s second thoughts on UK-made SUV add to Brexit worry

LONDON (AP):

British Prime Minister Theresa May’s Brexit strategy took ­another blow Sunday when Nissan cancelled plans to make its new SUV in northern England amid continued uncertainty over the country’s future relations with the European Union (EU).

Nissan said it decided not to build the X-Trail model at its ­existing UK plant, cancelling plans announced two years ago after May’s government made undisclosed concessions designed to ensure the carmaker’s ability to compete after Brexit.

The company said it instead plans to consolidate production of the next-generation X-Trail at its plant in Kyushu, Japan, where the model is currently produced. Nissan’s plant in Sunderland, England, which employs 7,000 workers, will continue to make Nissan’s Juke and Qashqai models.

“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,” Nissan Europe Chairman Gianluca de Ficchy said in a statement.

Less than two months before Britain’s scheduled withdrawal date, the government doesn’t have an approved agreement on the rules, conditions and terms that will replace the 45 years of frictionless trade that came with being an EU member.

Business leaders have expressed huge concerns about foreign investment, jobs and economic growth taking a hit if the country crashes out of the bloc on March 29 without a divorce deal.

May’s government has refused to rule out a ‘no-deal’ Brexit, saying that doing so would weaken her position with EU negotiators.