**Title:** A No-Deal Brexit Jeopardizes Nissan’s European Business Model
**Summary:** Nissan’s European chairman warns that a no-deal Brexit could threaten the company’s operations due to potential export tariffs. The Sunderland plant, where the new Juke model will be produced, faces uncertainties amidst Brexit. The majority of the components for the car come from the EU, with a significant portion of sales targeted at the EU market.
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If a no-deal Brexit materializes, Nissan’s European business model might face significant challenges. With the possibility of 10% export tariffs under World Trade Organization regulations post-Brexit, the company’s operations could be at risk.
Nissan’s European chairman, Gianluca de Ficchy, expressed these concerns at the Sunderland plant, which recently received substantial investment from Nissan for manufacturing the new Juke model. Despite also producing the Qashqai and electric Leaf models, the uncertainty surrounding Brexit has complicated plans for the company.
The forthcoming Juke model, to be produced in the UK, primarily targets the European market. The car relies on about two-thirds of its components sourced from the EU, with an estimated 70% of Juke sales expected within the EU. In addition to the Sunderland plant, employing 7,000 workers, Nissan has operations in Spain as well.
As the countdown to a no-deal Brexit approaches, Nissan is apprehensive about its European operations. Mr. de Ficchy highlighted the potential challenges, stating, “If a no-deal Brexit results in a 10% export duty under WTO rules, it will pose a significant issue for Nissan Europe. With 70% of our production being exported from the UK to the EU, sustaining such tariffs would render our business model unsustainable. This jeopardizes not just Sunderland but the overall economic viability of our operations in Europe,” in an interview with the BBC.
