Brexit with tariffs will jeopardize the sustainability of Nissan's production in Britain

Brexit with tariffs will jeopardize the sustainability of Nissan's production in Britain

Any departure from Britain from the European Union (EU), which worsens the conditions for doing business by raising tariffs, would jeopardize the sustainability of Nissan's operations in the United Kingdom. This was pointed out by the operations director of the Japanese carmaker Ashwani Gupta. Nissan employs 7,000 people at Britain's largest car plant in Sunderland. In June, the carmaker again called on the government in London to strive for "controlled and balanced Brexit". The latest warning comes at a time when the EU has warned London that there are less than 10 days left to secure a trade agreement from next year. In this context, Gupta said that after a possible Brexit without an agreement, the British race would no longer be sustainable for Nissan. Even after almost 11 months of a transitional period during which trade is governed by the same rules as during Britain's bloc membership, both parties still failed to reach a trade agreement. British Prime Minister Boris Johnson, meanwhile, has warned his key ministers that the trade deal is far from certain. He added, however, that Britain would prosper either with or without an agreement. In March, Nissan said it would push to expand production in Sunderland with a new Qashqai sport utility vehicle. When Nissan announced its plan to launch Leaf electric cars in 2016, Britain assured it that Brexit would not affect its competitiveness. But the introduction of tariffs under World Trade Organization (WTO) rules after Brexit without agreement has increased Nissan's costs. And any delay in the supply of overseas components for new customs controls could slow down production. The potential disruption of Brexit supply chains across Europe could harm other producers and hit economies struggling with a new coronavirus pandemic. Gupta also said that Nissan was not asking Britain to reimburse Brexit-related costs without an agreement. This contradicts the media information that he wants to do with Toyota. "We don't think about it at all and we don't discuss it," he said. He added that Nissan will continue production in Britain as long as its business there is sustainable. Toyota has a plant in the county of Midlands and manufactures engines at a plant in Wales. Honda Motor, which makes Civic models in Swindon, announced last year that it would close its only plant in Britain due to Brexit. 3500 people will lose their jobs.