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EC Queries UK Over Assurances Given to Nissan
The European Commission says it has asked the U.K. for details about the assurances it gave last month to soothe Nissan Motor Co.’s concerns regarding the impact of the country’s vote to exit the EU.
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The European Commission says it has asked the U.K. for details about the assurances it gave last month to soothe Nissan Motor Co.’s concerns regarding the impact of the country’s vote to exit the EU.
The EC describes the query as a routine competitiveness check to make sure the U.K. isn’t favoring one company over another. Doing so would violate EU rules to which the country must abide until England’s withdrawal is completed about two years from now.
Nissan CEO Carlos Ghosn warned in September that the company might freeze further investment in the U.K. unless the government guaranteed such facilities won’t be saddled with post-Brexit tariffs that make them less competitive. But after a meeting last month with Prime Minister Theresa May, Ghosn announced two new vehicle programs for Nissan’s assembly complex in Sunderland.
On Monday co-CEO Hiroto Saikawa said the government “assured” the company it “will keep us competitive,” Bloomberg News reports. The British government has said its aim is to maintain the U.K.’s current duty-free access to the EU.
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