Nissan to cancel plans to build X-Trail in Britain

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The new Nissan X-Trail SUV was supposed to be built in Sunderland, but Nissan is set to announce it is keeping X-Trail production in Japan.

A senior Nissan boss blasted Brexit "uncertainty" as he confirmed that the company had scrapped plans to build the X-Trail 4x4 at its Sunderland plant, but said that the decision had been taken for "business reasons". The X-Trail production plans had been announced in the autumn of 2016.

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Update: Nissan has now officially confirmed this news.

Large auto manufacturers have been struggling with a huge slump in European diesel vehicle sales, a slowdown in Chinese purchases and a tough transition to a new EU emissions-testing system.

Mr de Ficchy said: "The continued uncertainty around the UK's future relationship with the European Union is not helping companies like ours to plan for the future".

Current production in Sunderland includes the Nissan Leaf, Europe's best-selling electric auto, which reached a record 46,989 units last year, up 177 per cent from the previous year, according to the company.

Britain on Monday will seek to reassure foreign investors anxious about Britain leaving the European Union (EU) after Japanese automaker Nissan said it was scrapping a major planned investment less than two months before Brexit.

Unions have said they are "seriously concerned" about the ramifications and called the news "disappointing" on Monday.

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Kainos's results come as it was revealed Nissan will still receive most of the £61 million given by the government to persuade it to keep operations in the United Kingdom, despite choosing to manufacture its flagship 4x4 in Japan instead of Britain.

X-Trails will now be exported to Europe under the recently struck EU-Japan trade deal which allows cars to be sold here under low tariffs.

Business secretary Greg Clark said that while the announcement was a "blow to the sector and region", no jobs would be lost.

Production of diesel cars was down by 22 per cent to 561,000 previous year.

Elliott remarked the uncertainty around Brexit is always a factor now in any decisions made in manufacturing.

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

Nissan say much as we said in the article; it makes sense, with Nissan moving away from diesels in the United Kingdom and Europe, to keep X-Trail production in Japan.

The Nissan (7201.T) announcement comes less than a month after Jaguar Land Rover and Ford (F) announced thousands of job cuts at United Kingdom factories.

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

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