In the News
Nissan to make new Qashqai and X-Trail models in Britain
30th October 2016
Nissan's importance to the North east economy is hard to over-state so this announcement is welcome news indeed.
Underneath the surface, the planned investment comes with "assurances" from the UK government that Nissan's commitment will not be undermined by the fallout from the Brexit vote - I wonder what those assurances are? Presumably "shielded means shielded?"
The size and scope of the financial package / assurances given to Nissan might well fall foul of EU rules on state aid - but with EU exit scheduled for the spring of 2019, this may not be that relevant to the debate.
Here are some reactions to the breaking news about the Nissan investment and links to analysis in the media. 7,000 jobs are directly affected by the decision with perhaps an extra 20-25,000 jobs secured in supply-chain industries in and around the highly productive car plant at Washington in Tyne and Wear.
We’re proud to produce in the UK, and will be building the next-generation Qashqai and X-Trail models in Sunderland. https://t.co/Ek6xWAAfG2 pic.twitter.com/HzrN12wnKT
— Nissan Motor (@NissanMotor) October 27, 2016
Nissan to make new Qashqai and X-Trail models in Britain https://t.co/zrpIQeHY0M
— Guardian Business (@BusinessDesk) October 27, 2016
Nissan will build its new Qashqai model in Sunderland https://t.co/nV1Q8Z8qPH
— Sky News (@SkyNews) October 27, 2016
FINANCIAL TIMES FRONT PAGE: 'Nissan pledge to UK plant after Brexit assurances from May' #skypapers pic.twitter.com/uuzGUDFebl
— Sky News (@SkyNews) October 27, 2016
My understanding is that quite a big package of incentives and guarantees is involved. Probably more than permitted by State aids rules. https://t.co/ISNmbDHTXu
— Douglas McWilliams (@DMcWilliams_UK) October 27, 2016
Good GKN case study of pan-Europe integrated supply chain of car parts - cant see how this works outside Customs Union/ with Rules of Origin pic.twitter.com/kg3hEzaj7M
— Faisal Islam (@faisalislam) October 27, 2016
Nissan is to build new models at its Sunderland plant, boosting confidence in the UK following the Brexit vote https://t.co/eNEckM421U pic.twitter.com/q8Q8HRdW5N
— Financial Times (@FT) October 27, 2016
Car manufacturing accounts for 0.8% of UK GDP. Precisely the same share as care homes. And film/TV production. Worth remembering today
— Ed Conway (@EdConwaySky) October 27, 2016
Will Brexit allow subsidies to support trade. Is New Trade Theory appropriate for the UK? https://t.co/IUsyFBtYZ4
— Richard Schofield (@SchoeyEconomics) October 27, 2016
#Toyota also to continue to invest in UK because it trusted the govt would not let it lose out from #Brexit either https://t.co/gfm5tXDuZn
— Linda Yueh (@lindayueh) October 27, 2016
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.
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