But what has the government offered Nissan? Ministers are refusing to give details, but that hasn’t stopped the wider car industry seeking guarantees against damage from Brexit.
That’s probably all for today, unless anything else major happens. I’ll be back tomorrow with more live coverage, including growth figures for France and the US.
There’s no question of financial compensation over tariffs, because we’ve said that what is necessary is that we are going to maintain the competitiveness of the sector.
But otherwise, it was like a rerun of Just A Minute (but without the humour).
Bang on cue.... Britain’s car industry is demanding assurance that it will be protected from any trade tariffs or migration curbs following the UK’s exit from the EU.
Mike Hawes, chief executive of the Society for Motor Manufacturers and Traders, says:
“Today’s announcement is good news for UK Automotive and jobs, confirming Britain as a leader in automotive production.
To secure this position, however, we need government to provide public assurance to investors that our advantages will be maintained – namely, a competitive business environment, the ability to recruit talent from abroad and the continuation of all the benefits of the single market as we leave the EU.”
Carlos Ghosn is clutching a piece of paper, promising help from the government if Britain’s exit from the EU hurts Nissan.
So says Reuters, which reports:
Britain has given Nissan a written commitment of extra support in the event that Brexit reduces the competitiveness of its Sunderland plant, in return for new production investments by the Japanese carmaker, a source with knowledge of the matter told Reuters.
In addition to unconditional investment aid, Britain pledged in a letter to offer further relief if the terms of Britain’s European Union exit ended up harming the plant’s performance, the source said.
Our political reporter Jessica Elgot has full details of Labour’s reaction to Nissan’s announcement:
John McDonnell, Labour’s shadow chancellor, criticised the deal done with Nissan as a “chaotic” strategy.
In a speech where he had criticised the government for appearing to prioritise financial services over manufacturing and small businesses, said there had been no public discussion of the deal hashed out for the car maker.
“We know nothing about it,” he said. “Are they literally going to decide factory by factory which one gets support? We have to have a comprehensive plan, and this is chaos at the moment.”
“We are trying to get a consensus and heal the divisions the referendum brought and we cannot do that with secret deals behind closed doors. It will divide our country once more.
The first deal looked like it would be protecting financial services, paid for by others. And now with Nissan, other manufacturers are saying what are we going to get? We have to have a comprehensive plan. What we need is more openness and transparency and accountability.”
Unite assistant general secretary Tony Burke says it recognises the UK car industry’s world-leading status.
“Nissan’s decision is a massive vote of confidence in the skills and expertise of a world-class workforce and testament to their hard work which has made the Sunderland plant one of the most productive in the Nissan family.
Burke says the government must now secure tariff-free access to the single market, to help all UK car markets.
More news! The deadlock in Belgium that was preventing the EU signing a trade deal with Canada has been broken!
Prime Minister Charles Michel has declared that “an agreement” has been reached with the French-speaking communities in Wallonia who sensationally blocked the deal last week.
Cecilia Malmström, the Eu trade commissioner, says it’s an important breakthrough, that could mean the deal can now be signed.
John McDonnell, Labour’s shadow chancellor, isn’t impressed that Nissan have apparently cut a deal to stay in Sunderland.
Sky’s Faisal Islam has the details:
Nissan’s surprise announcement came just as McDonnell was giving a speech about the economy, which is rather bad luck for Labour (unless the dark arts of political spin are in play...).
Our Politics Live blog has been tracking it though:
Nissan: We're sticking with Sunderland following May's Brexit pledge
It’s official! The next Qashqai will indeed be build in Sunderland, despite the uncertainty over Britain’s future.
Nissan is also pledging to build its next 4x4 X-Trail vehicle there too.
And the company also confirms that Theresa May’s government has given a ‘commitment’ that the plant’s competitiveness won’t be damaged by Brexit.
Here’s the official statement:
Nissan Motor Company Ltd. today announced, following its Executive Committee meeting, that it will produce the next Qashqai and will add production of the next X-Trail model at its Sunderland, U.K. Plant.
Nissan’s decision follows the U.K. government’s commitment to ensure that the Sunderland plant remains competitive. As a result, Nissan will increase its investment in Sunderland, securing and sustaining the jobs of more than 7,000 workers at the plant.
“I am pleased to announce that Nissan will continue to invest in Sunderland. Our employees there continue to make the plant a globally competitive powerhouse, producing high-quality, high-value products every day,” said Carlos Ghosn, Chairman and CEO of Nissan.
“The support and assurances of the U.K. government enabled us to decide that the next-generation Qashqai and X-Trail will be produced at Sunderland. I welcome British Prime Minister Theresa May’s commitment to the automotive industry in Britain and to the development of an overall industrial strategy.”
Nissan’s Sunderland plant opened in 1986 and has produced almost 9 million cars since. One in three British cars are produced in Sunderland, which is the UK’s largest car plant of all time. In addition, 80% of production from Sunderland is exported to over 130 international markets. More than 2 million Qashqai’s have been built in Sunderland in less than 10 years. In addition to the 7,000 direct employees at Sunderland, the plant supports a further 28,000 British automotive supply chain jobs. To date, Nissan has invested more than £3.7 billion in Sunderland.
Has Nissan managed to get the UK government to promise compensation, if the EU imposes tax barriers on car imports after Brexit?
CEO Carlos Ghosn was pretty clear that he wanted protection from any new tariffs, once Britain leaves the European Union.
After meeting Theresa May on October 14, Ghosn said:
If there are tax barriers being established on cars, you have to have a commitment for car-makers who export to Europe that there is some kind of compensation.
The BBC’s Simon Jack says that Nissan has received “support and assurances” from Theresa May’s government, encouraging it to build the new Qashqai in Sunderland.
The FT’s Peter Campbell predicts an official announcement soon:
Reuters: Nissan to build next Qashqai in Sunderland
Reuters are reporting that Nissan, the Japanese carmaker, has decided that it will build its next Qashqai SUV in Sunderland.
That would be a significant boost for the region, and one of the first major investment decisions since June.
The Nissan plant at Sunderland employs around 7,000 people, and is Britain’s biggest car factory.
Last week Nissan’s chief executive Carlos Ghosn met prime minister Theresa May, and warned that his company could stop investing at Sunderland unless it was protected from any adverse impact from the Brexit vote.
Today’s growth report shows that the “Brexit bogeyman” hasn’t yet been as scary as initially feared, says Nancy Curtin, Chief Investment Officer at Close Brothers Asset Management.
She writes:
Any lingering concerns over an immediate collapse in growth in 2016 have been officially put to bed, with output continuing to grow in the first major assessment of domestic activity post-referendum. Supportive monetary policy has played a part, while the softer pound has kept factory orders ticking along. These, along with robust consumption, will be key levers of growth.
But Curtin also predicts a slowdown next year:
The quarter on quarter slowdown in the growth rate suggests Brexit uncertainty is having some bite, and it’s likely the ambiguity around the UK’s exit from the EU will take some of the steam out of the long-term growth rate, with anaemic growth likely to become status quo while Article 50 negotiations rumble on.
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