Nissan's Choice For New X-Trail Car is Japan instead of UK

The failure of Britain's government so far to negotiate a smooth exit plan from the European Union has made car manufacturers less willing to use Britain as a European manufacturing centre

Nissan said in a statement that the letter showed both the company's and the government's "continued desire to support investment in the United Kingdom and maintain Sunderland as one of Nissan's manufacturing hubs in Europe".

The British government disclosed it Monday, a day after Nissan said it has canceled plans to produce its next-generation X-Trail SUV at the Sunderland plant in northeastern England.

In the letter, Clark said he understands Nissan's "worries now about uncertainties" as Britain prepares to leave the European Union.

Business Secretary Greg Clark said: "Nissan's announcement is a blow to the sector and the region, as this was to be a further significant expansion of the site and the workforce".

Our North of England Correspondent Clare Fallon has spent the day outside the UK's largest auto plant.

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Nissan will be forced to reapply for £61m of taxpayer support after backtracking on a promise to built its X-Trail SUV in Sunderland.

"They also pointed out what they've said consistently since 2016, that a risk of a no-deal Brexit is a source of damaging uncertainty".

"Therefore the company has chose to optimise its investments in Europe by consolidating X-Trail production in Kyushu".

Other future models planned for Nissan Sunderland Plant are unaffected, including next-generation Juke and Qashqai.

However, the failure of Britain's government so far to negotiate a smooth exit plan from the EU has made auto manufacturers less willing to use Britain as a European manufacturing centre.

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The letter makes clear that in return for the full £80 million ($104 million), Nissan would need to "allocate production" of its Qashqai and X-Trail sport utility vehicles to Sunderland.

Sunderland City Council leader Coun Graeme Miller said: "While this decision is not expected to have an immediate impact on jobs at Nissan, anything that affects longer term investment in the plant is obviously a cause for concern".

Mr Matthews said the cancellation was likely to have repercussions for employees throughout the supply chain, who may have to cancel purchasing plans such as moving house or buying a new auto.

"We should actually be majoring on what Nissan do to help tomorrow's auto industry this country and in Europe, rather than building something that Europe does not want". If the company itself isn't saying that Brexit is the main driver here, shouldn't we believe it?

Yes, the uncertainty around the UK's future relationship with the European Union is unhelpful.

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