The comments from the Society of Motor Manufacturers and Traders (SMMT) came after Nissan have hinted that they may pull out of investing in their Sunderland plant.
Nissan’s CEO, Carlos Ghosn, warned that the company could potentially scrap a proposed investment into the one of the UK’s largest car factories unless the government pledges compensation for any tariffs that may be imposed after Brexit.
“If I need to make an investment in the next few months and I can’t wait until the end of Brexit, then I have to make a deal with the UK government,” Ghosn said. “If there are tax barriers being established on cars, you have to have a commitment for car makers who export to Europe that there is some kind of compensation.”
Nissan will decide early next year where it will build its next-generation Qashqai, which has been the company’s best-selling model and is currently made in Sunderland.
Another Japanese car manufacturing giant, Toyota, have also warned that it would be tough for its UK plant if the country failed to achieve a full free-trade deal with the rest of Europe. The company’s executive vice president, Didier Leroy, said “The challenge for all of us in the UK is to stay competitive because 85% of our production from the UK plant is exported to continental Europe. If 85% has to pay trade duties it will be very, very tough but we want to stay committed to the UK business and our factory in the UK.”
Mike Hawes, CEO of the SMMT, said: “The current uncertainty is not conducive to attracting manufacturing investment to the UK. The government must do all it can to maintain the competitiveness of the UK automotive sector, which has been hugely successful in boosting exports, creating jobs and generating economic growth in recent years.”
