Protect our auto industry

The government must not pull promised financial support for skills and innovation from Nissan following the firm’s decision to scrap plans to build X-Trail cars in the UK because of Brexit uncertainty and falling diesel sales, Unite has said.

Business secretary Greg Clark told MPs yesterday (February 4) evening that Nissan will have to reapply for ÂŁ60m of government funding promised to it in the wake of the EU referendum in 2016.

Shortly after the vote to leave, the Japanese carmaker was assured by Clark that the car industry would be protected from Brexit and that Nissan would receive funding on the condition that it would continue to invest in its Sunderland plant.

Despite the government’s promises to shield car makers from Brexit – revealed after Clark was forced to release a long withheld letter to the company – uncertainty continues to reign and was cited as one of the reasons behind Nissan’s decision not to produce the X-Trail in Sunderland.

Though no jobs have been lost and the production of the Qashqai and Juke models will continue as planned, the move means that around 740 new roles will not be created in an area crying out for decent jobs.

The decision has also unsettled workers at the plant who expressed concerns over how Brexit may influence its future.

Nissan worker Gary Orr told The Times, “The Micra is already built in France and we have been told that Renault in France and Nissan in Spain can bid for future models.

‘Disadvantaged position’

“The Sunderland plant will be in a disadvantaged position. The main reason Nissan came to Britain was because of free trade access to Europe. All future model allocations are in serious doubt.”

Unite automotive acting national officer Steve Bush called on ministers to urgently address sector-wide Brexit uncertainty, which could be allayed by a deal that ensures the UK belongs to a customs union with the EU and has Single Market access.

Bush added, “The government also needs to get a grip and do more to support car workers and the industry in the transition away from diesel to alternatively powered vehicles.”

Funding would need to be re-applied for

But worryingly, business secretary Clark said that Nissan’s decision to manufacture the X-Trail in Japan instead of Britain meant that promised public funding for skills, innovation and R&D would have to be reapplied for.

Speaking in the House of Commons, Clark said, “Grant support for training and development and environmental improvements were applied for and approved… on the basis that both the Qashqai and the X- Trail models would be built in Sunderland.

“(Nissan) will be invited to resubmit an application in the light of the changed investments that they are making.”

Unite assistant general secretary Steve Turner said the government is “walking a tightrope” with people’s jobs and the long term future of the car industry and called on Clark not to break his promise of support to the firm.

“After trashing diesel and crashing consumer confidence, it is vital the government supports investment in infrastructure, research and development, and the skills needed to support a just transition away from combustion engines to electric and alternatively powered vehicles,” Turner said.

“Unite hopes Greg Clark is not talking of reigning back that support when he talks of Nissan reapplying for grant aid. While understanding the need to ensure public money is spent wisely, such a move would be a step in the wrong direction at a time when the UK’s car workers are fighting for their livelihoods and the future of their industry.”