Nissan staying in UK is great news after Brexit, but car industry鈥檚 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.

This article was first published in the Conversation

Without a trade deal with the EU, Nissan  its Sunderland plant in north-east England would be “unsustainable”. It would have to withdraw from the UK in the same way , whose plant in Swindon is shutting down permanently .

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  71% since the 2016 vote. And besides Honda, other manufacturers , which makes engines in the UK, had also threatened to pull out in the event of no deal.

Realistically,  was essential to secure UK car manufacturing – even if it meant the compromises that have  to Whitehall, protesting that their industry has literally been sold down the river. The question is, where does UK automotive go from here?

Business not as usual

The UK is a mid-ranking car manufacturer, with Tata/Jaguar Land Rover  and other substantial players including BMW/Mini, Toyota, Stellantis/Vauxhall and of course Nissan. In 2019,  were produced, with eight out of ten exported and over half of those to the EU. Over the same period, Germany manufactured 5 million cars and France 1.4 million, while  China and the US produced 26 million and 11 million respectively. These figures have fluctuated in 2020 due to the pandemic.

Cont…

To read the full piece by Professor Jim Saker visit .

ENDS

Notes for editors

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