You are here: Home » Reuters » News
Business Standard

Nissan's Ghosn to make Brexit investment decision by end of year

Reuters  |  LONDON 

By Costas Pitas

(Reuters) - Japan's will decide by the end of the year whether to build its new Qashqai SUV model at Britain's biggest car plant, a source told Reuters, after CEO Carlos Ghosn Prime Minister Theresa May to seek reassurance over the impact of Brexit.

Just weeks after telling that he could scrap new investment unless he got a guarantee of compensation for costs related to Brexit, Chief Executive Ghosn held talks with May in her Downing Street residence in central London. [nL8N1C54R2]

Businesses have been concerned that is headed towards a "hard Brexit", which would leave it outside the European single market and facing tariffs of up to 10 percent on car exports.

Nissan, which made nearly one in three of Britain's 1.6 million cars last year, already builds the Qashqai sport utility vehicle at its Sunderland plant in northern England. The time it takes to bring a new car into production means needs to decide on the location of its next generation model soon.

"The decision-making process is in the next few weeks and months with a decision expected before the end of the year," a company source told Reuters on Friday, adding that the location might not be announced until early next year.

The source also said that a further meeting between May and Ghosn had not been scheduled but that senior and government officials would continue meeting in the coming weeks.

After speaking to May, Ghosn did not disclose whether the issue of compensation had been raised.

"I am confident the British government will continue to ensure the UK remains a competitive place to do business," said Ghosn, nicknamed "le cost killer" for slashing expenditure at French carmaker Renault which he also heads.

STAYING COMPETITIVE

Ghosn's concerns over trade barriers led other carmakers to warn about the consequences of a "hard Brexit", favoured by some ruling Conservatives who wish to impose limits on immigration, a key concern of many voters who backed Brexit in June's referendum.

The chief executive of Britain's biggest automaker Jaguar Land Rover told Reuters that any Brexit deal would have to guarantee a "level playing field", opening up the possibility that others too would seek financial guarantees. [nL8N1C63CD]

The government has said it would do everything it could to encourage, develop and support strategic sectors of the economy such as car manufacturing. May said on Friday she would cooperate with the Japanese carmaker in the future.

"We will continue to work with as we develop the environment for competitiveness of the automotive industry here in the UK to ensure its success," she said after meeting Ghosn.

Last month published a list of requests to and the over Brexit, including maintaining the current duty-free trade between and the and preventing any additional customs clearance burden on trade.

Nissan, Toyota and Honda together built almost half of all of Britain's cars in 2015.

The largely foreign-owned car industry was a strong supporter of continued membership of the European Union ahead of the June 23 vote, benefiting from unfettered access to the world's biggest trading bloc and its standardised regulations.

On Wednesday, a dispute between Britain's biggest retailer Tesco and consumer goods company Unilever caused by a plunge in the pound since Britons voted to leave the highlighted business tensions following Brexit.

Ghosn said that it was important that the Sunderland facility, which directly employs 7,000 people and many more through the supply chain, remains one of the firm's most efficient plants.

"We want to ensure that this high-performing, high-employment factory remains competitive globally and continues to deliver for our business and for Britain."

(Additional reporting by Kylie Maclellan; editing by Guy Faulconbridge/Keith Weir)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

RECOMMENDED FOR YOU

Nissan's Ghosn to make Brexit investment decision by end of year

LONDON (Reuters) - Japan's Nissan will decide by the end of the year whether to build its new Qashqai SUV model at Britain's biggest car plant, a source told Reuters, after CEO Carlos Ghosn met Prime Minister Theresa May to seek reassurance over the impact of Brexit.

By Costas Pitas

(Reuters) - Japan's will decide by the end of the year whether to build its new Qashqai SUV model at Britain's biggest car plant, a source told Reuters, after CEO Carlos Ghosn Prime Minister Theresa May to seek reassurance over the impact of Brexit.

Just weeks after telling that he could scrap new investment unless he got a guarantee of compensation for costs related to Brexit, Chief Executive Ghosn held talks with May in her Downing Street residence in central London. [nL8N1C54R2]

Businesses have been concerned that is headed towards a "hard Brexit", which would leave it outside the European single market and facing tariffs of up to 10 percent on car exports.

Nissan, which made nearly one in three of Britain's 1.6 million cars last year, already builds the Qashqai sport utility vehicle at its Sunderland plant in northern England. The time it takes to bring a new car into production means needs to decide on the location of its next generation model soon.

"The decision-making process is in the next few weeks and months with a decision expected before the end of the year," a company source told Reuters on Friday, adding that the location might not be announced until early next year.

The source also said that a further meeting between May and Ghosn had not been scheduled but that senior and government officials would continue meeting in the coming weeks.

After speaking to May, Ghosn did not disclose whether the issue of compensation had been raised.

"I am confident the British government will continue to ensure the UK remains a competitive place to do business," said Ghosn, nicknamed "le cost killer" for slashing expenditure at French carmaker Renault which he also heads.

STAYING COMPETITIVE

Ghosn's concerns over trade barriers led other carmakers to warn about the consequences of a "hard Brexit", favoured by some ruling Conservatives who wish to impose limits on immigration, a key concern of many voters who backed Brexit in June's referendum.

The chief executive of Britain's biggest automaker Jaguar Land Rover told Reuters that any Brexit deal would have to guarantee a "level playing field", opening up the possibility that others too would seek financial guarantees. [nL8N1C63CD]

The government has said it would do everything it could to encourage, develop and support strategic sectors of the economy such as car manufacturing. May said on Friday she would cooperate with the Japanese carmaker in the future.

"We will continue to work with as we develop the environment for competitiveness of the automotive industry here in the UK to ensure its success," she said after meeting Ghosn.

Last month published a list of requests to and the over Brexit, including maintaining the current duty-free trade between and the and preventing any additional customs clearance burden on trade.

Nissan, Toyota and Honda together built almost half of all of Britain's cars in 2015.

The largely foreign-owned car industry was a strong supporter of continued membership of the European Union ahead of the June 23 vote, benefiting from unfettered access to the world's biggest trading bloc and its standardised regulations.

On Wednesday, a dispute between Britain's biggest retailer Tesco and consumer goods company Unilever caused by a plunge in the pound since Britons voted to leave the highlighted business tensions following Brexit.

Ghosn said that it was important that the Sunderland facility, which directly employs 7,000 people and many more through the supply chain, remains one of the firm's most efficient plants.

"We want to ensure that this high-performing, high-employment factory remains competitive globally and continues to deliver for our business and for Britain."

(Additional reporting by Kylie Maclellan; editing by Guy Faulconbridge/Keith Weir)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

Nissan's Ghosn to make Brexit investment decision by end of year

By Costas Pitas

(Reuters) - Japan's will decide by the end of the year whether to build its new Qashqai SUV model at Britain's biggest car plant, a source told Reuters, after CEO Carlos Ghosn Prime Minister Theresa May to seek reassurance over the impact of Brexit.

Just weeks after telling that he could scrap new investment unless he got a guarantee of compensation for costs related to Brexit, Chief Executive Ghosn held talks with May in her Downing Street residence in central London. [nL8N1C54R2]

Businesses have been concerned that is headed towards a "hard Brexit", which would leave it outside the European single market and facing tariffs of up to 10 percent on car exports.

Nissan, which made nearly one in three of Britain's 1.6 million cars last year, already builds the Qashqai sport utility vehicle at its Sunderland plant in northern England. The time it takes to bring a new car into production means needs to decide on the location of its next generation model soon.

"The decision-making process is in the next few weeks and months with a decision expected before the end of the year," a company source told Reuters on Friday, adding that the location might not be announced until early next year.

The source also said that a further meeting between May and Ghosn had not been scheduled but that senior and government officials would continue meeting in the coming weeks.

After speaking to May, Ghosn did not disclose whether the issue of compensation had been raised.

"I am confident the British government will continue to ensure the UK remains a competitive place to do business," said Ghosn, nicknamed "le cost killer" for slashing expenditure at French carmaker Renault which he also heads.

STAYING COMPETITIVE

Ghosn's concerns over trade barriers led other carmakers to warn about the consequences of a "hard Brexit", favoured by some ruling Conservatives who wish to impose limits on immigration, a key concern of many voters who backed Brexit in June's referendum.

The chief executive of Britain's biggest automaker Jaguar Land Rover told Reuters that any Brexit deal would have to guarantee a "level playing field", opening up the possibility that others too would seek financial guarantees. [nL8N1C63CD]

The government has said it would do everything it could to encourage, develop and support strategic sectors of the economy such as car manufacturing. May said on Friday she would cooperate with the Japanese carmaker in the future.

"We will continue to work with as we develop the environment for competitiveness of the automotive industry here in the UK to ensure its success," she said after meeting Ghosn.

Last month published a list of requests to and the over Brexit, including maintaining the current duty-free trade between and the and preventing any additional customs clearance burden on trade.

Nissan, Toyota and Honda together built almost half of all of Britain's cars in 2015.

The largely foreign-owned car industry was a strong supporter of continued membership of the European Union ahead of the June 23 vote, benefiting from unfettered access to the world's biggest trading bloc and its standardised regulations.

On Wednesday, a dispute between Britain's biggest retailer Tesco and consumer goods company Unilever caused by a plunge in the pound since Britons voted to leave the highlighted business tensions following Brexit.

Ghosn said that it was important that the Sunderland facility, which directly employs 7,000 people and many more through the supply chain, remains one of the firm's most efficient plants.

"We want to ensure that this high-performing, high-employment factory remains competitive globally and continues to deliver for our business and for Britain."

(Additional reporting by Kylie Maclellan; editing by Guy Faulconbridge/Keith Weir)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard