Nissan's real Brexit problems have not yet started

Snow and ice storm traffic disruption on Mill Lane Whitburn

Business Secretary Greg Clark, making a statement to the Commons today, said Nissan's announcement that it would not build its X-Trail auto in Sunderland meant that 741 additional jobs would no longer be created, adding: "Nissan confirmed that production of the new Qashqai, Juke and Leaf will continue at Sunderland and there are no implications of the decision for existing jobs at the plant".

But that decision was partly overturned this weekend, when Sky News revealed the firm had chose to build the X-Trail in Japan instead amid a collapse in diesel sales in Europe and continued Brexit uncertainty.

Nissan has canceled plans to build the next-generation X-Trail for European markets at its Sunderland plant, choosing the Kyushu plant in Japan instead.

Nissan Motor Co.'s flagship auto plant in a corner of the United Kingdom that voted to leave the European Union suffered a blow after executives said they're reining in production at the site.

Meanwhile, a government minister has said Nissan will still get its money.

Britain secured the Nissan investment just four months after the June 2016 vote to leave the European Union with promises to maintain the competitiveness of the plant. Cable said. "It's actually self-harming and they should just stop".

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Kainos provides software solutions for businesses in the public, healthcare and financial services sectors and now has ongoing projects at the Home Office and Department for Environment, Food and Rural Affairs in relation to Britain's withdrawal from the EU.

Mr Clark later told MPs (BSE: MPSLTD.BO - news) in the Commons that the company would have to reapply for grants in light of its decision. "I think the most likely outcome is still a deal".

Nissan said it opposed Brexit in 2016. It said "the current workforce" in England would not be affected, leaving in doubt the additional jobs government and union officials had been counting on.

Thatcher had lobbied the Japanese government and industry since the 70s to set up in Britain; attracting their investment became a crucial component of her vision of Britain's future, as she closed the old heavy industries down.

Nissan's decision is another blow to the British vehicle industry, which reported a 46 per cent drop in investment a year ago as carmakers delayed decisions on upgrading machinery and factories amid mounting concern about the impact of a hard Brexit.

"Ultimately, it comes down to what we need, as soon as possible, is that clarity", Hawes said. "But we still operate in that global environment and while there is uncertainty, investments pause".

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