Nissan chief hails Brexit victory as it looks to expand UK production

Nissan has hailed the Brexit deal, claiming it will give the Japanese automaker a "competitive edge" as it looks to buy more batteries from within the UK to avoid tariffs.

The company has confirmed it will be operating battery production near its manufacturing plant in Sunderland, which is currently the largest car factory in the UK and is set to go full-steam ahead with the production of its new SUV, the Qashqai.

The plant currently employs 6,000 people and supports 70,000 jobs on the supply chain.

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The plant has seen £400 million (€448 million) in investments since the Brexit vote in 2016.

Nissan's COO Ashwani Gupta said the Brexit deal turned out to be a positive for the automaker, saying this is owing to it not relying on batteries from east Asia, unlike some of its competitors.

By 2027 all British and European carmakers will have to source their car batteries from either the UK or EU or face tariffs.

Gupta told the BBC: "The Brexit deal is positive for Nissan. Being the largest automaker in the UK we are taking this opportunity to redefine auto-making in the UK.

"It has created a competitive environment for Sunderland, not just inside the UK but outside as well.

"We've decided to localise the manufacture of the 62kWh battery in Sunderland so that all our products qualify [for tariff-free export to the EU]. We are committed to Sunderland for the long term under the business conditions that have been agreed."

This marks a change of tone by Nissan, who had previously warned of the potentially calamitous effects of Brexit.

Gupta revealed his company would not be affected by potential port disruptions as a result of the EU withdrawal, but that Nissan will halt one of its Sunderland plants two supply lines owing to effects of the pandemic.

The pandemic has sent supply chains haywire due to completely unpredictable patterns, particularly early on.

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Many companies have adapted somewhat to the pandemic, and vaccine hope has helped some markets attempt to return to a degree of normalcy.

The UK has vowed to ban the sale of all diesel and petrol vehicles by 2030.

However, the pandemic has brought on a global semiconductor shortage, because of a massive increase in demand for electronics products, which many semiconductor producers are giving their supplies to.

Nissan previously announced it was slashing its production to compensate, which is expected to have an effect on its sales for 2021.

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