Expect to see more X-Trail units in Japan car auctions soon because the new model will be built in the country. Just recently, Nissan announced that the company has chosen to manufacture the new model in Japan instead of its initial plan to allocate the project to its Sunderland plant in the United Kingdom (UK). Nissan wrote to its workers mentioning that it has been challenging for the company to ‘plan for the future’ due to the Brexit uncertainty.
In 2016, Nissan announced that it would manufacture the new X-Trail model in the United Kingdom. The carmaker initially made this decision after getting several ‘assurances’ from the government. Consequently, members of the European Union (EU) expressed their disappointment and serious concern over the news. After all, Nissan’s decision will affect the sector significantly. That said, the company guaranteed that no jobs will go as a result of this move. Since 1986, Nissan has been manufacturing vehicles in its Sunderland plant which employs almost 7,000 people.
Nissan Plans to Optimize Its Investments
Nissan said that its decision was primarily affected by how fast and significantly the car industry environment has changed in Europe. For instance, the government was quick to impose more unforgiving emissions regulations. In the UK, diesel cars must meet the latest standards for emissions. Otherwise, these vehicles will be levied. Several European countries also announced bans on petrol and diesel vehicles. Consequently, diesel car sales in the UK plummeted by 30% last year.
Gianluca de Ficchy, Nissan Europe chairman, mentioned that the company plans to optimize its investments. Initially, the firm discussed producing the new X-Trail model at its Kyushu plant. However, two years ago, the company saw good business potential in bringing production to Europe. That said, Nissan decided that the company will benefit more in concentrating the manufacture in Kyushu.
X-Trail Will Maintain its Versatile and Powerful Performance
The Nissan X-Trail has been popular across the world for its stunning looks and powerful performance. One of the features that people love about this vehicle is its strong chassis which makes it ideal for off-road activities. It may not be a sports vehicle, but its versatility and strength can easily challenge any SUV.
We may have to wait until the middle of 2019 before Nissan releases the new X-Trail model that has been manufactured in Japan. However, if you do not like to wait, you can always get older models at a more affordable price. You can find great quality X-Trail units via Carused.jp’s car auctions. If you’re lucky, you might end up getting the car below $1,000! Are you ready to bid on your X-Trail? Click the button below to use our online auction tool!
Sunderland Plant not Abandoned
According to de Ficchy, Nissan’s Sunderland plant will focus on developing new powertrains and technologies for the next generation of vehicles. The company plans on backing this investment by taking advantage of its global assets. Since the new X-Trail will be manufactured in Japan, the automaker will be able to reduce its upfront investment costs.
de Ficchy assured that the Sunderland workforce will have the full confidence of the company. According to Business Secretary Greg Clark, Nissan confirmed that its workers should not worry about losing their jobs. The automaker maintains its commitment to continue production in its Sunderland plant. According to Clark, Nissan will keep manufacturing the current and the 2020 models of Qashqai. It will also continue to produce Leaf and Juke models in its Sunderland hub.
Disappointing News for Many in the UK
According to de Ficchy, Nissan has taken the decision to move the X-Trail production to Japan for the benefit of the business. After all, the continued uncertainty around the future relationship of the UK with the EU is affecting how the company plans for the future. Several automakers, including Toyota, Vauxhall, and Jaguar Land Rover have stated that they are worried that the possibility of a no-deal Brexit will disrupt their supply chains.
According to Business Secretary Clark, the announcement coming from Nissan will significantly affect the sector and the region. The production of the new X-Trail model was initially expected to be a considerable expansion of the workforce and the site. Steve Bush, Unite’s acting national office for the car sector added that the ‘disappointing news’ was a reflection of the serious challenges that the entire automotive industry in the UK is facing. He said that the Union is gravely worried that the community might lose the much-needed additional jobs and apprenticeships that come with future investments.
According to Julie Elliott, Sunderland Central MP, Nissan’s decision is devastating for their city and the entire region. She said that any decisions made in the manufacturing sector are always affected by the uncertainty around Brexit. Labor leader Jeremy Corbyn mentioned that the botched negotiations of the Conservatives along with the threat of a no-deal Brexit are damaging the economy of Britain.
The Factors that Affected the Decision of Nissan
It is true that Brexit was a significant factor in Nissan’s decision. However, there are many other reasons why the automaker came to this choice. It is worth noting that car sales in China began to decline in the past years. Since this Asian country is the biggest car market in the world, the decline unnerved the automotive industry across the globe. That issue went side-by-side with the economic rough patch in Europe.
The future of diesel technology has become questionable after governments in the EU have imposed unforgiving regulations on it. This issue is further affected by the Brexit uncertainty in the UK. The automotive sector has long been concerned about how the trading rules will change once the UK leaves the EU. Some of the potential issues arising from this include border taxes, customs delays, and manufacturing disruptions.
It is worth noting Renault partly owns Nissan. As such, there have been circulating rumors that the Japanese automaker might move production to France in the future. Doing so will let the company avoid any tariffs after Brexit.
