No-deal Brexit tariffs would jeopardise our Europe business model, says Nissan
Tariffs introduced in the wake of a no-deal Brexit would make Nissan’s business model in Europe unsustainable and put the future of its Sunderland plant in jeopardy, the carmaker has warned.
Nissan’s European chairman, Gianluca de Ficchy, said the imposition of WTO tariffs of 10 per cent on vehicles would threaten “the entire business model of Nissan in Europe”.
The Japanese firm uses the Sunderland plant as a base for its European operations, but de Ficchy told reporters Britain leaving the EU without a deal would make it impossible for the carmaker to continue this model.
“If we are in a situation in which tomorrow we will have to apply 10% export duties to 70% of our production, the entire business model of Nissan in Europe will be in jeopardy,” he said.
“If there will be a no-deal – and a no-deal will be associated with WTO tariffs application – that won’t be sustainable for us,” de Ficcy added.
Nissan made almost one in three of the 1.5 million cars produced in Britain last year, and supports 30,000 jobs in Britain. The carmaker has spent £100m on investment in its new Juke model, which is due to begin production next week.
Prime minister Boris Johnson is still seeking a deal with the EU ahead of the UK’s scheduled departure from the bloc, but has said he is prepared to leave without a deal.
De Ficcy said Nissan was “asking not to have tariffs being applied in a no-deal scenario because otherwise the tariffs won’t be sustainable for us”.
Assistant secretary general of the Unite union, Steve Turner, said the government “would be reckless to dismiss this worrying no deal Brexit warning from Nissan”.
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Turner said a no-deal Brexit would “torpedo the frictionless just-in-time supply chains that Nissan relies on”.
“However workers voted in the 2016 referendum,” he continued, “they did not vote to sacrifice their jobs. They are holding their breath as the government plays no deal Brexit poker with their livelihoods and their hopes for the future.”
Main image credit: Getty