Nissan will need to reapply for United Kingdom government funding: Greg Clark

Greg Clark has faced criticism over Nissan

Nevertheless, shortly after McVey's appearance on Nigel's show, Nissan's Europe division boss Gianluca de Ficchy announced that the decision was a mixture of investment needed for emissions regulations and reduced sales forecasts and that added uncertainty over Brexit had also played a part.

The original decision, which would have created 740 new jobs, was hailed by Prime Minister Theresa May, who had newly taken office at the time, as a major boost to the it began the process of extricating itself from the European Union.

In the letter to then Nissan chief executive Carlos Ghosn, Clark said the government would provide "a package of support in areas such as skills, R&D and innovation" that could be worth up to £80m. The secretary told parliament Monday that as a result an offer of grants totaling 61 million pounds was made on June 21, 2018, and of them, 2.6 million pounds has already been paid.

The letter said: "It will be a critical priority of our negotiations to support United Kingdom vehicle manufacturers, and ensure their ability to export to and from the European Union is not adversely affected by the UK's future relationship with the EU".

Automotive manufacturers in the United Kingdom with diesel cars that fail to meet the latest emission standards now face a number of hefty levies.

Nissan has chose to move assembly of X-Trail cars to its global production hub on the island of Kyushu in southern Japan, reversing a decision made in October 2016.

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But the pledge depended on continued production of the Qashqai and X-Trail models at the carmaker's Sunderland plant, the Financial Times reported.

Nissan had been making the cars in sunderland since 1986 and it has nearly 7,000 people employed there.

But speaking alongside Japanese Prime Minister Shinzo Abe in Tokyo, she said: "We want to do everything to avoid a no-deal, because that would increase the uncertainty".

"Unite will continue to press for further long-term guarantees over future investment and new models to secure the site's future for generations to come", said acting national officer for the automotive sector Steve Bush.

"They also pointed out what they've said consistently since 2016, that a risk of a no-deal Brexit is a source of damaging uncertainty".

Writing in the Daily Telegraph, he said that "if Tory MPs were asked to go into electoral battle in the next few months, there would be a hole in the heart of our manifesto". "As long as we have a current commitment to safeguard the current competitiveness we will be fine".

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