Nissan will build a new Qashqai in the UK

Nissan will build a new Qashqai in the UK

March 10, 2020 0 By autotimesnews

Nissan’s plans for a new-generation Qashqai at its Sunderland plant in the UK remain unchanged despite uncertainty with Brexit.

The automaker announced an investment of £ 52 million ($ 68 million) in a new XL assembly line at the plant as part of a major overhaul of the Sunderland plant worth £ 400 million ($ 522.6 million), which is expected in 2021, which exceeds the amount £ 100 million ($ 130.5 million) invested in the launch of the new Juke. These investments are part of the total planned infusion of funds into the Nissan plant in the amount of £ 1 billion ($ 1.3 billion) over five years.

A statement was issued despite Nissan’s previous warnings that Britain’s withdrawal from the EU would make the European business of the Japanese company (including the factory in Barcelona) unstable. According to the English publication, Nissan received assurances from the government that Brexit would not hit competitiveness.

While Britain officially left the European Union in January, trade conditions would remain unchanged until the end of the year. After that, a new deal will come into force, which has yet to be agreed. Automakers fear that any additional tariffs, customs checks, and regulations could increase costs, slow down, or potentially halt production.

The UK is Nissan’s largest manufacturing center in Europe, and the Sunderland complex is currently building LEAF, Qashqai and Juke. The factory employs more than 7000 people. Until 2019, the factory also produced Infiniti cars, but their production was reduced due to a decrease in demand for diesel versions. In addition, Sunderland missed the next-generation X-Trail in Japan.

The Sunderland plant is the UK’s largest automobile factory, which in 2019 built around 350,000 cars. However, last year, production was almost a third less than in 2016, when more than 500,000 cars were produced.