Nissan sweetener - WTF

[Bearbehind]

Have I got this right:-

• TM visits Nissan after the referendum in 2016 to talk Nissan into building the X-trail in Sunderland
• Nissan subsequently confirm the build and the government categorically states they did not offer them a bung to do so
• come 2019 Nissan said it’s changed it’s mine, partially to do with Brexit and now won’t build the X-trail here
• ministers announce they think Nissan shouldn’t receive the £60m bung they were offered
• ministers then realise they hadn’t told anyone about the bung so now look pretty fucking stupid.

Is that the mist of it?

Why on earth does anyone have any faith in this process?

The x trail is now to be built in Japan I believe? And not the EU? Why is that?
Is it to do with the market for diesel cars in the EU being in massive decline?

Its like a perfect storm.

Diesel cars in the EU being in decline ( but they are still making the diesel QasQai there).

The X trail being a bigger seller in the US and Australia.

Uncertainty about the future due to Brexit.

Lower tariffs from now on cars and 0% Tariffs on automotives in the EU from 2023, by which time there are planned to be new models. So no point updating Sunderland to produce one that has 4 years left in production, lower sales in the EU and will can be produced with maximum efficiency in Japan, whilst the ability of Sunderland to do so is questionable for that period of time.

Lewwat, Japan have a new trade deal with the EU so there's no tariffs on imports from Japan to the EU. Nissan have (as youd imagine) lots of production facilities in Japan, so why not produce them in a tariff free factory without the expense of building a factory in the EU instead of Sun'lun where there will be tariffs?

If you want to talk about sweeteners and 'unusual dealing' look at the arms trade. At least you can't get any real information.

"The x trail is now to be built in Japan I believe? And not the EU? Why is that?
Is it to do with the market for diesel cars in the EU being in massive decline?"

Pretty much.
China is their target market for diesel engines. Hence the decision to make it in Japan.
I'm sure I heard someone on the news a few days ago saying it would require a petrol engine to be financially viable as a UK build. The petrol engines are made in Japan and to ship them over would be far too expensive.
Considering those two facts together, it seems rather likely that they would have come to the same decision regardless of in or out.

Considering those two facts together, it seems rather likely that they would have come to the same decision regardless of in or out

That's what I was thinking, I don't believe this really is a "brexit" thing, but it's suits the narrative none the less

I also don’t believe it’s entirely due to Brexit but there are 2 facts which cannot be denied here

1 - the government lied about offering incentives to Nissan to stay
2 - when weighing up investment options, the fact the UK won’t have unrestricted access to the E.U. market is a massive obstacle

"2 - when weighing up investment options, the fact the UK won’t have unrestricted access to the E.U. market is a massive obstacle"

What's a massive obstacle is the knowledge and experience of the workforce and ready made plant.
I doubt that any company worth their salt will be making any decisions based on Brexit when it's all still up in the air.

Wouldn't be a good look if execs made the decision to locate production at this point when a definitive outcome regarding UK/EU could be a matter of weeks or even months away
Nah. Whole thing smells of poo...and business strategy/logistics.

Wouldn't be a good look if execs made the decision to locate production at this point when a definitive outcome regarding UK/EU could be a matter of weeks or even months away

Its not weeks or months away, its years before our trading relationship with the EU or anyone else will be known.

"Its not weeks or months away, its years before our trading relationship with the EU or anyone else will be known"

On the 29th March there's a rather significant event due to occur that will define how we do business with the EU for the next x amount of years.
I wasn't suggesting that anyone hangs around long enough for the details of a definitive trading relationship to be declared lol

What's a massive obstacle is the knowledge and experience of the workforce and ready made plant.

Err, maybe the fact they won’t be able to actually produce the vehicles in a cost effective manner if JIT delivery falls down.

You people really do have your head in the sand don’t you?

And that’s before the tariffs to move them out of the UK afterwards.

On the 29th March there's a rather significant event due to occur that will define how we do business with the EU for the next x amount of years.

The problem is it won't. Whatever happens on 29th ... the WA being passed, or no-deal, the actual trade relationship with the EU will take years to decide.