Nissan to cancel X-Trail production plans in latest auto industry setback

Nissan scraps plan to build new model in Britain

The company said it instead plans to consolidate production of the next generation X-Trail at its plant in Kyushu, Japan, where the model is now produced.

Nissan has told staff in Sunderland that it will cancel plans to build its new X-Trail SUV at the plant there, following reports in the news on Saturday.

Her tweet added that Brexit was just a part of the problem.

Other future models planned for Nissan Sunderland Plant are unaffected, including next-generation Juke and Qashqai. The X-Trail is produced exclusively in Japan.

Nissan is set to announce on Monday that it has changed plans to build the vehicle at its plant in Sunderland, northeast England, according to Sky News.

It sparked questions over whether a deal between the carmaker and the government had been struck, although ministers insisted that no "financial compensation" had been offered.

"This represents a serious blow to the communities that depend on the jobs Nissan creates and supports", Keir Starmer, the opposition Labour Party's Brexit spokesman, wrote on Twitter.

"I will be doing everything I can to protect the jobs at the Sunderland plant. None of it is conductive to encouraging business investment in this country".

"They have reiterated today their commitment to the United Kingdom by continuing to manufacture in Sunderland the current Qashqai, Leaf and Juke models and the new Qashqai model from 2020".

Mr Turner said it is "beyond disappointing" that Unite members heard about their futures and the holding back of planned Sunderland investments through the media and not directly from the company.

SMMT chief executive Mike Hawes said the fall in investment was "deeply depressing" and should send a strong signal to politicians to secure a Brexit trade deal.

Nissan is part-owned by French manufacturer Renault, which had led to concerns that production could be moved to France to avoid tariffs that might be introduced on exports to the European Union if the United Kingdom leaves the single market without a deal.

"These rumours are disturbing and will cause the workforce to have a very anxious weekend even though production of the X-Trail would have necessitated additional jobs on site", he said.

The Society of Motor Manufacturers and Traders said in June that investment in new models, equipment and facilities in the United Kingdom was $A625 million in the first half of the year, compared to $A1.1 billion in the same period of 2017 - a decrease of about half.

It comes after Ford confirmed on Friday that it would be cutting around 370 jobs at its Bridgend plant as it restructures its production across Europe and the United Kingdom. It has been active since 1986 and is Britain's largest vehicle factory, making it one of the region's key employers.

Jaguar Land Rover has announced global cuts of some 4,500 jobs, with the lion's share coming in the UK.

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