Live revision! Join us for our free exam revision livestreams Watch now

In the News

International Location: Nissan Gets Assurances About Future Competitiveness

Jim Riley

30th October 2016

The written assurances given by the UK Government to Nissan guaranteeing that its operations in the UK will remain "competitive" are a significant moment in the relationship between government and strategically-important industries in the wake of Brexit.

The UK car industry has undergone a remarkable renaissance in recent years and has grown strongly whilst other parts of the UK's manufacturing sector have struggled to remain competitive.

Nissan's car factory in Sunderland is widely regarded as the most efficient in Europe. Yet Nissan had expressed concerns that Brexit would significantly undermine its cost competitiveness.

80%+ of the cars made at Sunderland head immediately for the Port of Tyne docks, to be exported to the European Union. Toyota and Vauxhall are other UK-located manufacturers with similar levels of EU exports.

As the video below explains, the UK government has felt compelled to offer Nissan assurances that Brexit will not result in worse trading conditions, though quite how it can guarantee this before the Brexit negotiations begin is uncertain.

Those assurances appear to have comforted Nissan who have announced a further expansion at Sunderland, bringing in production currently done in Japan.

But has the UK government set a dangerous precedent? Might other firms and industries seek the same assurances which could, in turn, weaken the UK's negotiating position during the Brexit talks?

Nissan to remain in the UK | FT World

Jim Riley

Jim co-founded tutor2u alongside his twin brother Geoff! Jim is a well-known Business writer and presenter as well as being one of the UK's leading educational technology entrepreneurs.

© 2002-2024 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.