Nissan’s second thoughts on UK-made SUV add to Brexit worry

Associated Press

LONDON

British Prime Minister Theresa May’s Brexit strategy took another blow Sunday when Nissan canceled plans to make its new SUV in northern England amid continued uncertainty over the country’s future relations with the European Union.

Nissan said it decided not to build the X-Trail model at its U.K. plant, canceling plans announced two years ago after May’s government made undisclosed concessions designed to ensure the carmaker’s ability to compete after Brexit.

The company said it instead plans to consolidate production of the next generation X-Trail at its plant in Kyushu, Japan, where the model is currently produced.

Nissan’s plant in Sunderland, England, which employs 7,000 workers, will continue to make Nissan’s Juke and Qashqai models.

Less than two months before Britain’s scheduled withdrawal date, the government doesn’t have an approved agreement on the rules, conditions and terms that will replace the 45 years of frictionless trade that came with being an EU member.