Nissan Sunderland plant “unsustainable” without a Brexit deal

Nissan's Sunderland plant employs 7,000 people

Nissan’s global operating boss says recent commitment to Sunderland is dependent on tariff-free EU access

Britain’s largest car factory may still not have a future if the UK leave the European Union without a trade detail in place, Nissan has stated. 

The firm’s Sunderland plant, which employs 7,000 workers and made 350,000 cars last year, received a boost last week when Nissan confirmed it is committed to making it the centre of its European production operations. However, the brand’s global chief operating officer claims it is still at risk if a no-deal Brexit occurs. 

Ashwani Gupta told the BBC “You know we are the number on carmaker in the UK and we want to continue. We are committed. Having said that, if we are not getting the current tariffs, it’s not our intention but the business will not be sustainable. That’s what everybody has to understand”. 

Despite closing plants in Spain and Indonesia and claiming a commitment to Sunderland last week, Nissan describes its European business as “non-core”. The brand has a 3% market share across the region. 

Gupta also refused to confirm earlier reports that alliance partner Renault would take up spare manufacturing capacity to build platform-sharing models at Sunderland, stating it was a matter for the French carmaker. 

70% of Sunderland’s output is promptly exported and sold in EU markets. If the UK doesn’t secure a trade deal and defaults to World Trade Organisation rules, those exports would most likely be subject to a 10% tariff. Talks between the UK and EU have resumed this week.

The UK has until the end of June to decide if it wishes to request a Brexit extension, which the EU’s chief negotiator Michel Barnier has stated would be considered. 

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