Nissan boss says Brexit trade deal has given them a ‘competitive advantage in the UK and beyond’ and announces company will move production of its electric car batteries from Japan to Sunderland
- Ashwani Gupta, chief operating officer, said deal would ‘redefine’ the industry
- From Japan, Mr Gupta said Nissan would continue to invest in Great Britain
- He said the company has not stopped investing in the run-up to the UK’s departure from the EU
The Brexit trade deal has given Nissan a competitive advantage, a senior official at the Japanese auto giant said.
Ashwani Gupta, the automaker’s chief operating officer, said he believed the last-minute deal would ‘redefine’ the UK’s auto industry.
“Brexit has brought short-term business continuity, protected 75,000 jobs across Europe and most importantly – all our models we manufacture in Sunderland,” he told a press briefing.
From Japan, he said Nissan would continue to invest in the UK, stressing that the company will not stop investing in the run-up to the UK’s departure from the EU.
The Brexit deal had secured Nissan’s sustainability and the competitiveness of the giant Sunderland plant, he said.
The Brexit trade deal has given Nissan a competitive advantage, a senior official at the Japanese auto giant said. Pictured: the plant today
Ashwani Gupta (pictured), the automaker’s chief operating officer, said he believed the last-minute deal would ‘redefine’ the UK’s auto industry.
“Sunderland is one of the three largest factories in the world in terms of competitiveness for Nissan,” he said. “Brexit gives us a competitive advantage in the UK and beyond.”
Mr Gupta also said Nissan would move production of the batteries used in its Leaf electric cars to the UK to take advantage of trade regulations that guarantee zero tariffs on EU exports if at least 55 percent of the car’s value comes is from the UK or the EU. .
The batteries are currently being imported from Japan, but Mr Gupta told the BBC, ‘We have decided to locate the 62KW battery production in Sunderland so that all our products are eligible (for tariff-free export to the EU).’
By the end of 2023, all Nissan cars sold in Europe will have an electrified version, he said, adding that it is up to customers to decide how quickly they switch from gasoline and diesel engines.
Gupta added that Nissan’s message had been “ consistent ” in recent years, while Brexit created so much uncertainty for business.
“As long as current business conditions are maintained, we will be sustainable not only in Sunderland, but across Europe.”
Business Secretary Kwasi Kwarteng said: “Nissan’s decision represents a genuine belief in Britain and a tremendous vote of confidence in our economy thanks to the essential security our trade agreement with the EU has provided the automotive sector.
For the dedicated and highly skilled workforce in Sunderland, this means that the city will be home to Nissan’s latest models for years to come, positioning the company to take advantage of the wealth of benefits that electric vehicle production will bring as part of our green industrial revolution. ‘
Guy Opperman MP tweeted, ‘Huge news for the Northeast. # Nissan’s commitment shows a genuine faith in Britain and a tremendous vote of confidence in our economy. ‘
Nissan said one of the two lines at its Sunderland plant will interrupt production Friday due to European and global shipping routes and ports coming under pressure as a result of the coronavirus crisis.
This affects the line produced by Qashqai and Leaf, which will be back up and running next week.
A company statement said: ‘Production on line one at the plant has been interrupted due to a supply chain disruption caused by the Covid-19 pandemic. We expect production to resume next Monday. ‘
Steve Bush, Unite’s national automotive officer, said: “Mr Gupta’s support for the Nissan Sunderland plant is welcome and deserves no less than this incredible, dedicated workforce.
The Brexit deal had secured Nissan’s sustainability and the competitiveness of the giant Sunderland plant, the COO said. Pictured: The Sunderland factory
Due to ongoing uncertainty about the economy and public health, they have struggled to keep this plant as one of the most productive in the automotive industry and put it in the best place for the transition to the next generation of vehicles.
“These workforce and their community deserve a future and we will work with Nissan to make this come true, as bumpy times lie ahead.
As a result, Unite is seeking an urgent meeting with the government to discuss the role they should play in the full UK electrification required to secure this factory and similar facilities in the UK.
“The leaders of this country need to stop thinking in the short term and plan now for the changes that are coming our way soon.”