Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Nissan Europe 'unsustainable' in no-deal Brexit

The Japanese carmaker is concerned about the impact of export duties in the event of no-deal Brexit.

apanese carmaker Nissan has warned that a no-deal Brexit could make its European business model unsustainable.

Nissan's European chairman, Gianluca de Ficchy, said if a 10% export tariff was introduced after the UK left the EU it would put its operations "in jeopardy".

This would be the case if the UK moved to World Trade Organization (WTO) rules after Brexit, he said.

He was speaking at Nissan's plant in Sunderland, where work on a new model of the Juke is due to start.

The Japanese firm said it had invested £100m in the plant, which also makes the Qashqai and electric Leaf models.

Mr de Ficchy said Nissan still intended to build in Sunderland, the UK's biggest car plant, but that it was difficult to plan for the future amid Brexit uncertainty.

The new Juke has been designed and manufactured in the UK, aimed specifically at European markets, with two-thirds of its components coming from the EU and 70% of production destined for the continent.

Nissan, which employs 7,000 in Sunderland, also has operations in Spain.

Mr de Ficchy said the cost of moving to WTO rules would mean the "entire business model for Nissan Europe will be in jeopardy".

The car industry is the UK's biggest exporter of goods and eight out of every 10 cars built in the UK are exported.

Speaking to the BBC, Mr de Ficchy said: "We do not know still what a no-deal means.

"There are many alternatives, and today there is a lot of uncertainty.

"The only message I can [give] is that if a no-deal will be associated with the application of 10% duties under the WTO rules, that will create an enormous problem for the overall European activities of Nissan Europe.

"If we will have to sustain 10% export duties on the vehicles that we export from UK to EU, knowing that those vehicles represent 70% of total production, the overall business model won't be sustainable.

"It's not a question of Sunderland, it's a question of the overall economic sustainability of our business [in Europe]."

He said the business was asking for tariffs not be imposed if there is a no-deal Brexit.

"We are asking not to have tariffs being applied in a no-deal scenario because otherwise the tariffs won't be sustainable for us," he said.

A spokesperson for the Department for Business, Energy and Industrial Strategy said: "We continue to work closely with the sector as they get ready for Brexit on 31 October."

On Wednesday, union leaders revealed night shifts at Sunderland would end - but Mr Ficchy said this was not the result of Brexit.

Other carmakers have warned about the impact of Brexit on their business, not just because of the cost of tariffs but the potential slowdown in production caused by new customs checks after the UK leaves the EU.

The industry operates a "just-in-time" model, shifting parts around the EU to construct cars in plants across the 28-nation bloc.

Honda confirms Swindon car plant closure


September figures deepen industry gloom


Last month, Carlos Tavares, chief executive of PSA - the car group that owns Vauxhall - compared a no-deal Brexit to a head-on train crash.

He has warned previously that Vauxhall plants at Ellesmere Port and Luton were under threat from Brexit.

In June, PSA Group announced plans to build a new version of the Vauxhall Astra at its Ellesmere Port factory in Cheshire.

The industry is also under pressure with fewer diesel cars being bought and emissions standards presenting challenges for carmakers.

In February, Honda announced the closure of its Swindon plant but said it was nothing to do with Brexit.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
U.S. and Hungarian Officials Talk About Economic Collaboration and Sanctions Strategy
Technology Giants Activate Lobbying Campaigns Against Strict EU Regulations
Pope Francis Admitted to Hospital in Rome Amid Increasing Speculation on Succession
Zelensky Calls on World Leaders to Back Peace as Tensions Rise with Trump
UK Leader Keir Starmer Calls for US Security Guarantee in Ukraine Peace Deal
NATO Chief Urges Higher Defense Expenditure in Europe
The negotiation teams of Trump and Putin meet directly, establishing the groundwork for a significant advancement.
Rubio Touches Down in Riyadh Before Key U.S.-Russia Discussions
Students in Serbian universities Unite to Hold Coordinated Protests for Accountability.
US State Department Removes Taiwan Independence Statement from Website
Abolishing opposition won't protect Germany from Nazism—this is precisely what led Germany to become Nazi!
Transatlantic Gold Rush: Traders Shift Bullion in Response to Tariff Anxieties and Market Instability
Bill Ackman Backs Uber as the Company Shifts Towards Profitability
AI Titans Challenge Nvidia's Supremacy in Light of New Chip Innovations
US and Russian Officials to Meet in Saudi Arabia Over Ending Ukraine Conflict. Ukraine and European leaders – who profit from this war – excluded from the negotiations.
Macron Calls for Urgent Summit as Ukraine Conflict Business Model is Threatened
Trump’s Defense Secretary: Ukraine Won’t Join NATO or Regain Lost Territories
Zelensky Urges Europe to Bolster Its Military in Light of Uncertain US Backing
Chinese Zoo Confesses to Dyeing Donkeys to Look Like Zebras
Elon Musk is Sherlock Holmes - Movie Trailer Parody featuring Donald Trump's Detective
Trump's Greenland Suggestion Sparks Sovereignty Discussions Amid Historical Grievances
OpenAI Board Dismisses Elon Musk's Offer to Acquire the Company.
USAID Uncovered: American Taxpayer Funds Leveraged to Erode Democracy in Europe Until Trump Put a Stop to It.
JD Vance and Scholz Did Not Come Together at the Munich Security Conference.
EU Official Participates in Discussions in Washington Amid Trade Strains
Qatar Contemplates Reducing French Investments Due to PSG Chief Investigation
Germany's Green Agenda Encounters Ambiguity Before Elections
Trump Did Not Notify Germany's Scholz About His Ukraine Peace Proposal.
Munich Car Attack Escalates Migration Discourse Before German Elections
NATO Allies Split on Trump's Proposal for 5% Defense Spending Increase
European Parliament Advocates for Encrypted Messaging to Ensure Secure Communications
Trump's Defense Spending Goal Creates Division Among NATO Partners
French Prime Minister Bayrou Navigates a Challenging Path Amid Budget Preservation and Immigration Discourse
Steering Through the Updated Hierarchy at the European Commission
Parliamentarian Calls for Preservation of AI Liability Directive
Mark Rutte Calls on NATO Allies to Increase Defence Expenditures
Dresden Marks the 80th Anniversary of the World War II Bombing.
Global Community Pledges to Aid Syria's Political Transition
EU Allocates €200 Billion for AI Investments, Introduces €20 Billion Fund for Gigafactories
EU Recognizes Its Inability to Close the USAID Funding Shortfall Due to Stalled US Aid
Commission President von der Leyen Missing from Notre Dame Reopening Due to Last-Minute Cancellation
EU Officializes Disinformation Code for Online Platforms, Omitting X
EU Fails to Fully Implement Key Cybersecurity Directives
EU Under Fire for Simplification Discussions Regarding Corporate Sustainability Reporting
Shein Encountering Further Information Request from the EU During Ongoing Investigation
European Commission Initiates Investigation into Shein as It Aims at Chinese E-Commerce Regulations
German Officials Respond to U.S. Proposal for Peace Talks with Russia
Senate Approves Robert F. Kennedy Jr. as Secretary of Health and Human Services.
Trump and Putin Engage in Discussions on Ukraine Peace Negotiations Amid Worldwide Responses
Honda and Nissan End Merger Talks
×