Skip advert
Advertisement
Opinion

"Is compensation in the wake of Brexit financially viable?"

After a commitment from Nissan to remain in the UK post-Brexit, Graham Hope wonders how the Government's pledge to manufacturers will work

nissan factory

Let's get one thing straight from the start: Auto Express is delighted that the future of Nissan’s Sunderland plant has been secured with the confirmation that the next Qashqai and X-Trail will be built there. It’s a huge relief for the workers and Wearside as a whole, and well deserved on account of the plant’s remarkable productivity.

Advertisement - Article continues below

The aftermath to the announcement has been puzzling to say the least, though – in particular Business Secretary Greg Clark’s assertion that other car makers with UK operations, such as Vauxhall, Ford and Toyota, would benefit from the same assurances that helped make up Nissan’s mind to stay here following our vote to leave the EU.

Brexit spells uncertainty for UK car industry

What this means is unclear, but it’s been widely interpreted that the Government may provide compensation for manufacturers if export tariffs are imposed in the wake of a ‘hard Brexit’.

While this stance has been lauded by some as sensible recognition of the importance of the car industry to the UK, surely it’s a promise that can’t be made at this stage? Firstly, it’s hard to see how these assurances could only be made to car makers and not widened to other industries. That would cause major unease. And is it even financially viable? If tariffs are imposed, insulation from them, whatever the Government is proposing, won’t come cheap. 

General Motors warns of Brexit cuts in Europe

And of course, there’s the never-ending uncertainty that surrounds the whole Brexit question, illustrated yet again by last week’s court ruling that MPs have to be consulted before the UK can actually trigger exit negotiations. Will we go? If so, when? And how?

In truth, nobody knows, which is why I take Mr Clark’s comments with a pinch of salt. Nissan’s commitment to the UK is great news for it and Sunderland, but let’s not pretend that it sets a real precedent for the rest of the British car industry.

Do you agree with Graham? Let us know in the comments below...

Skip advert
Advertisement
Skip advert
Advertisement

Recommended

Best electric car deals: today's top discounts and incentives on new EVs
Best electric car deals - header image

Best electric car deals: today's top discounts and incentives on new EVs

Making the switch to an EV? These car brands have an offer (or two) for you
Best cars & vans
28 Apr 2025
Future of Nissan in the UK: new Gigafactory to power bold EV plans
Future of Nissan in the UK - header with Phil McNamara

Future of Nissan in the UK: new Gigafactory to power bold EV plans

Nissan is about to go from building the Qashqai hybrid to three fresh EVs in the UK over the next three years – all powered by a new gigafactory
Features
19 Apr 2025
Best new cars coming soon: all the big new car launches due in 2025, 2026 and beyond
Best new cars coming soon - header image

Best new cars coming soon: all the big new car launches due in 2025, 2026 and beyond

These are the most important new cars headed our way, from brands including Audi, BMW, Dacia, Ferrari, Ford, Skoda and more
Best cars & vans
8 Apr 2025
Confirmed: Renault Twingo-based Nissan EV incoming
Nissan A-segment EV

Confirmed: Renault Twingo-based Nissan EV incoming

Online investors’ call confirms Nissan will build a “derivative” of the Renault Twingo from 2026
News
31 Mar 2025

Most Popular

Ford Fiesta set to return? Icon could be reborn with a little help from Volkswagen
Ford Fiesta exclusive image

Ford Fiesta set to return? Icon could be reborn with a little help from Volkswagen

The Ford Fiesta could be coming back from the dead, and our exclusive image previews how it might look
News
2 May 2025
New 2025 Kia PV5 van starts from a tempting £22,645
Kia PV5 Cargo on display at Commercial Vehicle Show - front 3/4

New 2025 Kia PV5 van starts from a tempting £22,645

All-new entry into the van market promises competitive pricing and comes with a range of up to 247 miles
News
30 Apr 2025
New Kia PV5 Passenger MPV undercuts the VW ID.Buzz by a huge £25k
Kia PV5 Passenger - show front

New Kia PV5 Passenger MPV undercuts the VW ID.Buzz by a huge £25k

New entry into the electric people carrier market undercuts the VW ID. Buzz by a significant margin
News
29 Apr 2025