No-deal Brexit 'to jeopardise' Nissan Europe arm
The Japanese carmaker is concerned about the impact of export duties in the event of no-deal Brexit.
Japanese carmaker Nissan has warned that a no-deal Brexit would make its European business model unsustainable.
The firm's 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 case if the UK moved to World Trade Organization (WTO) 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.
"If a no-deal scenario means the sudden application of WTO tariffs, we know in that case our business model won't be sustainable in the future," said Mr de Ficchy.
"Our industry works with lower margins and if we are in a situation in which tomorrow we have to apply 10% export duties to 70% of our production, the entire business model for Nissan Europe will be in jeopardy.
"That's the reason why we continue to work with all scenarios."
'Not sustainable'
The car industry is the UK's biggest exporter of goods and eight out of every 10 cars built in the UK are exported,
Mr de Ficchy said WTO tariffs would "represent a significant increase on our vehicles that will have to face the competition in Europe and they won't be affordable."
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.
On Wednesday, union leaders revealed night shifts at Sunderland would end - but Mr Ficchy said this was not the result of 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.