Nissan has announced that they will build their new X-trial model strictly in Japan. The announcement came just two days after the EU-Japan Free Trade Agreement. The agreements allows manufacturers to import Japanese made cars without having to pay tariffs. The company says that the decision to move production to Japan is more based on the company’s sales than on Brexit. Nissan union officials, however, question if that statement is true.
Nissan Blames Poor Performance in England
The car manufacturer was once the biggest in England. Recent sales have been badly hit by lack of interest from buyers looking for diesel cars within the country.
Blow to Region’s Economy
Business Minister Greg Clark called the announcement a blow to the region’s economy. The government says that they will now reconsider $78.46 million package to help train new employees. The government designed the payments so that more employees could receive training in technology. They believed the employees would build new Nissan cars. Currently, Nissan makes about 30 percent of all vehicles driven in England. The company imports many of them from Japan. Officials with the government say that Nissan’s announcement is a serious blow to the economy. They point out that the entire region can suffer because of trickle-down economics.
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