Nissan, the automobile manufacturer, has canceled its plans to produce the new SUV X-Trail in the UK and announced that it will produce the model only in Japan. Two months before the Brexit, Nissan warned that the uncertainty about Britain's departure from the European Union (EU) makes it difficult to plan for the future. Reduced demand for diesel cars in Europe is forcing Nissan to invest in other technologies and save costs.

 

The production in Sunderland plant, the largest car factory in the UK, was dropped by 11% last year, and hundreds of people were laid off due to taxes and restrictions on diesel vehicles. In a statement from the company, it was noted that Nissan increased its investments for engine drive-trains and technology in vehicles that will be launched in Europe in the future; Therefore, the company decided to optimize its investments in Europe by consolidating X-Trail production in Kyushu. Nissan Europe Chairman Gianluca de Ficchy said, “Although we have taken this decision for business reasons, the continued uncertainty over Britain's future relationship with the EU does not help companies like us to plan for the future.” Approximately 30% of the 1.52 million cars produced in the UK are manufactured by Nissan and most of these vehicles are exported to Europe.