Brexit, a global pandemic and violent restructuring … The Nissan plant in Sunderland, in the north-east of England, seems to survive everything. Since June 8, its production lines have restarted, after three months of closure due to the Covid-19 pandemic. Above all, on May 28, the verdict of the dreaded restructuring plan for the Japanese brand, aimed at reducing its production capacity by 20%, fell: in Europe, the Barcelona factory will close, while that of Sunderland will remain open.
Taken from Yokohama, south of Tokyo, in a purely financial logic, the decision has important political repercussions in the United Kingdom. Despite itself, this huge factory has become a symbol of Brexit and its consequences. Sunderland, which voted 61% to leave the European Union (EU), is heavily dependent on the auto business. The Nissan plant, which produced 350,000 cars in 2019 and employs 5,700 people, is one of the largest in the world. Today it produces the Juke, a small model, the Qashqai, an SUV, and the Leaf, an electric model. "This plant is also one of the most profitable in the world"analyzes David Bailey, an automotive specialist at the University of Birmingham.
A new assembly line
But in the months following the Brexit referendum in 2016, all specialists in the automotive sector said it: the future of the factory, which exports 70% of its production to the EU, was becoming very uncertain . Carlos Ghosn, who was his boss at the time, went to brandish the threat to Downing Street. In a face-to-face meeting with then Prime Minister Theresa May, he pledged her promise that Britain’s trade relations with the EU would remain intact.
However, this will not be the case. Negotiations on the future commercial relations between London and Brussels, which are to enter into force on 1er January 2021, are still not concluded. For a few weeks, the tone has softened, but a failure remains possible.
And even if a compromise is found which would avoid customs duties, trade relations will no longer be the same. From 1er January, border checks will be required. Companies will have to make import and export declarations. The current border, fully open, will be a thing of the past.
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