Nissan to protect jobs in Sunderland.
The car maker has hailed the Brexit deal, saying the agreement will give it a "competitive advantage" as it committed to produce new electric vehicle batteries at its Wearside plant.
Last updated 22nd Jan 2021
Chief operating officer Ashwani Gupta said the deal gives Nissan the chance to "redefine the industry" and described new customs procedures resulting from Brexit as "peanuts".
He made his remarks as the company revealed that supply chain problems would result in a production line closing at the factory on Friday, but Nissan insisted it was down to COVID-19 and not Brexit red tape.
Mr Gupta's comments are likely to be seized on by ministers under pressure from a range of sectors to address the cost, complexity and delays arising from the new procedures.
Nissan was one of the most vocal business opponents of a no-deal Brexit, saying the imposition of tariffs would threaten the viability of its UK manufacturing base.
But in a marked change of tone, Mr Gupta said that - following agreement of a tariff-free deal - Nissan would now be in a position to capitalise.
He said the company would begin making the batteries for its long-range electric Leaf model in Sunderland later this year, a move that would likely create jobs on Wearside.
"Sunderland is already one of our most competitive plants in the Nissan world. We've been there for more than 35 years, which means we have a very competitive supply base.
"We are also going to get an advantage with rules of origin. We are going to get an advantage from sourcing the cars which come to the UK - not only from Europe but mainly outside."
Sunderland Council Leader Graeme Miller has been reacting to the news:
"This is another vote of confidence in the city’s world-leading automotive sector and for both Nissan and Envision AESC. It helps cement the city’s well-established track record in future technologies, which is vital to the city’s economy as well as to the wider economy of the region and UK.
"We know how important electrification is to the automotive and advanced manufacturing sector moving forward and this announcement not only reinforces Sunderland’s reputation in Electric Vehicle production but also as the UK centre for battery manufacturing.
"It is vital as we grow our green economy, work towards our goals to become carbon neutral as a city, and support achievement of the Government’s net zero targets. This is excellent news and a great step as we continue to move forward on this critical agenda."
The Prime Minister Boris Johnson has tweeted this morning to say:
"This is a great vote of confidence in the UK and fantastic news for the brilliant Nissan workforce in Sunderland and electric vehicle manufacturing in this country."