Nissan has confirmed it will not go ahead with plans to build anew model of one of its flagship vehicles at its Sunderland plant, as concerns over Brexit is affecting businesses.

 

According to The Guardian, the company announced in 2016 that plans to build the newest X-Trail SUV at the factory in north-east England would go ahead, but on Sunday it announced it would be produced in Japan.

 

Greg Clark, the business secretary, said it was not surprising that businesses were holding back on spending decisions, given the growing concerns around the future of the automotive industry after Brexit.

 

“People are keen to invest but all motor companies and others across the economy point to the fact they don’t know what our trading relationship will be with our most important trading partner, and that is a source of uncertainty they want resolved and I want it resolved too, because it is hampering investment that would otherwise be made,” Clark said.

 

Clark will give a statement about Nissan in the House of Commons today.

 

Nissan said plans over future models destined for the Sunderland plant, including the next-generation Juke and Qashqai, were unaffected by this announcement.

 

The announcement came days after figures from the Society of Motor Manufacturers and Traders (SMMT) showed that British car production had dropped to a five-year low in 2018, as manufacturers warned that fears of a no-deal Brexit had prompted a fall in new investment.

Image credit: Nissan

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