Image copyright Getty ImagesNissan is expected to announce that it is cancelling a planned investment at its plant in Sunderland.
In 2016 the car maker said it would build the X-Trail SUV in Sunderland after receiving “assurances” from the government over Brexit.
The company is expected to say investment will be now be pulled, rather than existing work being halted.
Labour MP for Houghton and Sunderland South, Bridget Phillipson, spoke of her concern at the prospect.
“If confirmed, this would represent deeply troubling news for the north east economy,” she tweeted.
“So many jobs and livelihoods depend on Nissan’s success.”
Labour Sunderland Central MP Julie Elliott suggested there was an “inevitable role that Brexit plays here…. None of it is conductive to encouraging business investment in this country”.
“I will be doing everything I can to protect the jobs at the Sunderland plant. I will be asking for the government to intervene, and will stay in close contact with the company itself,” she said in a Twitter post.
Nissan has produced cars at Sunderland since 1986 and employs almost 7,000 people.
Work on the Qashqai – which makes up the majority of Nissan Sunderland’s work and is the best-selling crossover vehicle in Europe – is not expected to be affected by the move.
BBC business reporter Rob Young said: “The reasons for the investment cancellation are not known, but the industry as a whole has been warning Brexit uncertainty might hit investment.”
The Japanese company refused to shed light on the situation. A spokesman said: “Nissan does not comment on rumour or speculation.”
There had been concerns that Nissan – part-owned by France’s Renault – could move production to France in future to avoid any post-Brexit EU tariffs.
But when the X-Trail investment was initially announced, Nissan said hundreds of jobs would be created at the plant.
It sparked questions over whether a deal between the car-maker and the government had been struck amid concerns over post-Brexit EU tariffs.
However, the government insisted no “financial compensation” had been offered.
Last April, Nissan said it was to cut hundreds of jobs at Sunderland, amid a decline in diesel sales.
Content provided by the BBC. Original piece can be found here https://www.bbc.co.uk/news/uk-england-tyne-47102708
