As Europe’s common economy, the EU implements a zero-tariff policy in its internal car trade. As a result, no matter which country in the EU are big car makers set up factories and then exported to other EU countries, it does not have much impact on themselves. However, since the UK left the EU, it has ceased to enjoy a zero-tariff policy on trade in the car industry. It also makes it hard for the major car companies that have set up factories in the UK to be bitter.
Nissan Has issued its toughest warning yet on the future of its plants in Western Europe,media reported. The company’s one plant in the UK is threatened by Brexit, while another in Spain has been hit by falling demand.
Gianluca de Ficchy, chairman of Nissan Motor Europe, said at a news conference near Paris on Monday that the company’s Sunderland plant in the UK was shrouded in uncertainty. The company makes most of its european production, with about three-quarters of them exported to the rest of the EU.
Mr de Fich said a 10 per cent tariff on cars and parts would not only lead to factory closures if the UK failed to strike a free trade deal with the EU, but would also affect Nissan’s European strategy. “We won’t survive because we can’t sell the car. “
Nissan’s Sunderland plant is the UK’s largest car-making facility, producing qashqai SUVs, Nissan’s best-selling model in Europe, along with the Juke and The Leaf, which are also Nissan’s best-selling models in Europe.
In response to the impact of Brexit, Nissan has also considered moving models made at its UK plant to a factory in Renault, a member of the alliance. But such large-scale production line changes, which would have to bear huge financial costs and take years, will have a significant impact on Nissan’s performance.
In addition, Nissan’s performance fell sharply last year, driven by multiple headwinds. Nissan Motor Co.’s third-quarter operating profit was Y23bn, while sales fell 18 per cent to Y2.5trillion, with a net loss of Y26.1bn ($238m), according to its latest results. It was also Nissan’s first quarterly loss since March 2009.