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Huge subsidies are hard to come to the adverse effects of Brexit. Nissan cancels the production plan in the UK.

Reference News Network reported on February 5 British media said that the automaker Nissan canceled the plan to produce new X-Trail SUVs in the UK, which will be fully produced in Japan. The company warned that less than two months before Brexit, the uncertainty brought about by Brexit increased the difficulty of the company's future planning.

According to Reuters reported on February 3, the decline in demand for diesel vehicles in Europe forced Nissan to invest in other technologies and save costs. Last year, the company's factory in Sunderland, England (the UK's largest automaker) cut hundreds of jobs due to taxes and diesel strikes. The company said: Nissan has increased its investment in new European automotive powertrains and technologies. Therefore, the company decided to optimize its investment in Europe by integrating X-Trail production in Kyushu, Japan.

The report said that Nissan's European Regional President Gianluca Defiki said: Although we made this decision for commercial reasons, the continued uncertainty of the future relationship between the UK and the EU does not help companies like ours. future plan. British Business Secretary Greg Clarke said the news was a blow to the industry and the region.

The UK will leave the EU on March 29. Members last month rejected Prime Minister Teresa May's Brexit agreement, which exacerbated concerns about a non-agreement of Brexit and new trade barriers. Teresa May said today that she will seek a pragmatic solution.

The report said that Nissan has manufactured about 30% of the country's 1.52 million cars and exported most of it to the European continent. After four months of voting in the UK in June 2016, the company said it would build a new X-Trail model in the UK – a vote of confidence in the UK and the recently appointed Mei. A source told Reuters that Nissan had received a letter from the government stating that if the Brexit hit the Sunderland factory's competitiveness, the government would give extra support.

Also, according to the Sunday Times, the Brexit Ministers are now considering whether to cancel the company's 60 million pounds ($78.46 million) package of support. The new X-Trail model could have created hundreds of jobs. Nissan said the automaker's investment plan for the next generation of Juke and Qashqai models was not affected in 2016.

The report said that just two days before the announcement of the news, the EU and Japan signed a free trade agreement, including the EU's commitment to cancel the 10% tariff on Japanese imported cars. When the UK encouraged Japanese companies to open factories in the UK, many Japanese companies have always regarded the UK as a gateway to Europe. Brexit has questioned this passage and has also caused Tokyo to panic.

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