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Nissan Delays U.K. Expansion Over Brexit
Nissan Motor Co. says it won’t move ahead on further investment in its factory in Sunderland, England, until the U.K. completes negotiations about exiting the European Union, the Financial Times reports.
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Nissan Motor Co. says it won’t move ahead on further investment in its factory in Sunderland, England, until the U.K. completes negotiations about exiting the European Union, the Financial Times reports.
CEO Carlos Ghosn tells reporters he doesn't know whether Brexit will alter economic conditions at the plant, which makes Leaf electric sedans and Qashqai SUVs. But he declares that “important investment decisions will not be made in the dark.”
Ghosn adds that investments still could move forward now—but only if the British government promises to compensate carmakers should trade barriers with Europe arise later.
The newspaper says Ghosn’s comments mark the first public admission by a major carmaker that its U.K. investment decisions are being affected by worries over the impact of Brexit. The concern is that British-made cars may face higher tariffs in Europe, their largest market, after England relinquishes its EU membership.
U.K.-based Jaguar Land Rover Ltd. cautioned on Wednesday that any new EU taxes on British trade would damage the luxury carmaker’s operations in England and raise the prospects of worker layoffs.
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