Nissan's UK organization tough to sustain without Brexit trade package: COO Gupta

18 November, 2020
Nissan's UK organization tough to sustain without Brexit trade package: COO Gupta
Any final exit by Britain from the European Union that worsens business conditions through increased tariffs would threaten the sustainability of Nissan Motor Co's UK operations, japan car maker's chief operating officer (COO) cautioned.

Any final exit by Britain from the European Union that worsens business conditions through increased tariffs would threaten the sustainability of Nissan Motor Co's UK operations, japan car maker's chief operating officer (COO) cautioned.

Nissan, which employs 7,000 persons at Britain's biggest car plant found in Sunderland, north-eastern England, found in June urged for an "orderly balanced Brexit". Its latest warning, on the other hand, comes as the EU cautions Britain it offers less than 10 days left to secure a deal which will govern trade from next year.

"If it happens without the sustainable business case obviously it is not a concern of Sunderland or certainly not Sunderland, obviously our UK business will not be sustainable, that's it," Nissan's COO Ashwani Gupta told Reuters in Wednesday.

Almost 11 months immediately after it formally quit the union, Britain and the EU have still not exercised a deal that will affect practically US$1 trillion in twelve-monthly trade carrying out a transition period that has held custom rules set up.

Primary Minister Boris Johnson has warned his top ministers a trade arrangement is far from certain, but that Britain would thrive with, or without, a good deal.

Nissan in March said it'll push ahead with a good 52-million-pound (US$69 million) expansion in Sunderland to build its new Qashqai athletics utility vehicle.

When it announced the program in 2016, Nissan, which builds it Leaf electric autos there, said Britain had reassured it Brexit wouldn't normally affect its competitiveness.

But tariffs caused by a no-offer Brexit would raise charges for Nissan, while any delay on parts supply from abroad due to brand-new customs checks could slow production.

Gupta said Nissan had not been seeking compensation from Britain for costs incurred from any no-package Brexit, contradicting press information that it and Toyota Motor Corp would do as a result.

"We are definitely not convinced that and we aren't discussing it," he explained.

On a separate plan announced by Johnson to go up a UK ban on new petrol and diesel cars and vans to 2030 from 2035, the Nissan executive explained his company was ready to respond.

"That is not just the UK's transition method, every country is discussing electrification. We are prepared."

Source: www.channelnewsasia.com
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