Nissan will review the case for future investment in Britain when the terms of its departure from the European Union become clear, its chief executive warned yesterday.
Carlos Ghosn, the boss of Nissan and Renault, has committed to making the next models of the X-Trail and Qashqai sports utility vehicles in Sunderland after securing a written assurance from Greg Clark, the business secretary, that the site’s competitiveness would not be harmed by Brexit.
Observers anticipate some form of support for carmakers to be announced next week as part of the government’s long-awaited industrial strategy.
Speaking in Davos, Mr Ghosn suggested that the government’s commitment was not a long-term solution for carmakers, which are exposed to withdrawal from the single market and customs union because of their cross-border supply chains.
“Obviously when the package comes, you are going to have to re-evaluate the situation and say: ‘OK, is the competitiveness of your plant preserved or not?’ ” he told reporters.
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Mr Ghosn said that he trusted and assumed Theresa May’s government would ensure that Sunderland remained competitive whatever the final outcome of Brexit talks.
“We’re going to have to make decisions on investment within the next two to three years. So obviously the faster the Brexit results come, the better,” he said.
The government has steadfastly rejected opposition demands that it publish the “letter of comfort” written to Mr Ghosn in October.
Nissan employs about 7,000 workers at the Sunderland plant, which produces more cars than all of Italy. The investment in the next generation of the Qashqai was considered vital for the factory’s future because it will leave it well placed for any further investment in driverless and electric cars.
If trade between Britain and Europe bounces back to World Trade Organisation rules, a 10 per cent tariff will be applied to exports to Europe. At the same time, the imposition of customs checks would require an overhaul of auto supply chains, which are based on the premise of “just in time” logistics.
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British car production hit a 17-year high in December, with nearly four in every five cars sent abroad. The SMMT, the industry body, said this week: “We must, at all costs, avoid a cliff-edge and reversion to WTO tariffs, which would threaten the viability of the industry.”