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Nissan staying in UK is great news after Brexit, but car industry's future is still very unclear


This “country of origin” rule affects companies like Nissan and Toyota, whose UK assembly plants source key high-value components from Japan and other non-European countries. (File photo: Jonathan Gallegos/Unsplash)
When the UK voted for Brexit, there were no positives for the UK car industry. The prospect of a 10% tariff on car production that involves parts and sub-assemblies moving in and out of the UK was untenable.
Without a trade deal with the EU, Nissan warned that its Sunderland plant in north-east England would be “unsustainable”. It would have to withdraw from the UK in the same way as Honda, whose plant in Swindon is shutting down permanently in July. ....

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Nissan staying in UK is great news after Brexit, but car industry's future is still very unclear


When the UK voted for Brexit, there were no positives for the UK car industry. The prospect of a 10% tariff on car production that involves parts and sub-assemblies moving in and out of the UK was untenable.
Without a trade deal with the EU, Nissan warned that its Sunderland plant in north-east England would be “unsustainable”. It would have to withdraw from the UK in the same way as Honda, whose plant in Swindon is shutting down permanently in July.
Nissan employs 6,000 people directly in Sunderland, and thousands more through the local supply chain. Its warning was reinforced by the fact that the company’s annual Sunderland investment had dropped 71% since the 2016 vote. And besides Honda, other manufacturers such as Ford, which makes engines in the UK, had also threatened to pull out in the event of no deal. ....

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