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Nissan Reassurance Poses More Questions Than It Answers

Brexit may mean Brexit, but nobody (least of all, it would seem, the government) yet knows exactly what “Brexit” means. One thing that businesses detest is uncertainty, so it is unsurprising that those that can are pressing the government for reassurances, if not clarification.

The Japanese government and Japanese firms have been clear that should the UK lose its membership of the EU single market, Japanese investment in the UK would be harmed and some Japanese businesses may decide to relocate back into the single market, leaving the UK.

One area of the UK which voted to leave the EU was the north east of the UK, including Sunderland where the Japanese car manufacturer Nissan has a major plant directly employing 7000 people and providing related work to at least 28000. In the light of the referendum outcome, Nissan said that it may reconsider its development plans for the Sunderland plant. However, following discussions with Mrs May and her team, Nissan said that it had gained the assurances it needed and would be producing two new vehicle lines at the plant.

The government has been very coy about what Nissan was promised, but at the weekend it emerged that the assurances given were that the industry would be "free and unencumbered by impediments" post Brexit. Help would be provided for continued competitiveness within the sector, encouraging the automotive supply chain into the UK and with research and development.

There has been speculation that the move means that the UK intends to remain with the Customs Union, but (typically) this has neither been confirmed nor denied. Whilst welcoming the decision, Labour’s Clive Lewis was sceptical and asked that a letter of support from the government to Nissan be published. "Are we really to believe that Nissan are risking millions of pounds of investment and the success of its newest models on the basis of the government's intentions alone?" he asked, quite reasonably. The government has refused to “give a running commentary” on the Brexit process, but the fact that it appears willing to offer private reassurance to a Japanese/French company whilst declining to brief parliament has angered many.

Dr. Mike Campbell
About Dr. Mike Campbell
Dr. Mike Campbell is a British scientist and freelance writer. Mike got his doctorate in Ghent, Belgium and has worked in Belgium, France, Monaco and Austria since leaving the UK. As a writer, he specialises in business, science, medicine and environmental subjects.
 

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