Nissan Confirms X-Trail Model Will Not Be Built In Sunderland Adding That Brexit Is ‘Not Helping’

X-Trail and Qashqai production had secured thousands of jobs in the Brexit-backing city, but prompted a volley of questions over whether a so-called “sweetheart deal” between the car-maker and the Government had been struck to protect the manufacturer from any post-Brexit EU tariff wall.

Ministers strongly denied any financial incentives were offered and Chancellor Philip Hammond said any costs arising from the assurances would be small enough to be covered within existing spending limits at the Department for Business.

Nissan is part-owned by French manufacturer Renault, which had led to concerns that production could be moved to France to avoid any tariffs which might be introduced on exports to the EU if the UK leaves the single market in a hard Brexit.

Other Nissan models built at the Sunderland plant include the Qashqai, Juke, Q30, Note and the zero-emission electric Leaf.

Earlier this month American car manufacturer Ford confirmed nearly 400 jobs would be lost at its engine manufacturing plant in Bridgend.

The company said the “voluntary separation programme” at the Welsh factory is needed to cut costs and create a “sustainably profitable business” in Europe. 

It followed a similar move by Jaguar Land Rover to reduce its 44,000 workforce by 4,500 under plans to make £2.5 billion of cost savings.

Most of the cuts will be in the UK, with a voluntary programme being launched, and are in addition to 1,500 workers who left the company last year. 

Japanese firm Honda also announced six non-production days in April under contingency plans to mitigate the risk of disruption to production at its Swindon factory after the UK leaves the EU.