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Nissan Warns Brexit Could Damage its UK Investments

Nissan, the largest car factory in the UK has said it would need to be compensated for tax barriers that may arise following Britain’s exit from the European Union.

Nissan Warns Brexit Could Damage its UK Investments

The plant, located in Sunderland, manufactures up to a third of the cars in the UK.

These warnings come following growing concerns in the UK automotive industry about potential tariffs resulting from Britain’s decision to leave the Union.

Speaking at the Paris Motor Show, Mr. Ghosn said, “If I want to investment in the next couple months and I cannot wait until Brexit is finalized, then I have to get into an agreement with the UK government.”

He added, “If you have something negative you can have commitments for compensation.”

Early next year Nissan will decide where to it will build its next Qashqai, its sport utility vehicle.

The Sunderland plant is Nissan’s largest factory in the whole of Europe and can produce as many as 500,000 cars per year. The plant employs about 6,700 people.

Mr. Ghosn said, “We would be happy to stay, we have a good productive plant but we cannot stay if the conditions are not favorable.”

Speaking to the BBC, he said that the factory in Sunderland would no longer be competitive if leaving the EU meant that Britain had to pay up to 10% in tariffs to import to countries in the union.

On Thursday, Liam Fox, the UK international Trade Secretary said that it would benefit other countries to eliminate tariffs as these would have a greater effect on the greater Europe.

In 2015, Britain manufactured about 1.59 million cars with up to 80% of them being for export to other countries in Europe. The sprawling industry employs as many as 800,000 people.

Honda, the Japanese carmaker has also issued a statement urging the British government to take quick action on Brexit to end the uncertainty.

In a statement Jean Marc Streng, Honda Europe’s general manager said that what the carmakers needed was free trade.

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