Nissan, the biggest auto producer in the UK, has deepened its commitment to its Sunderland plant in northern England, defusing a spat with the British government over potential compensation connected to Brexit.
The Japanese auto maker will manufacture the next generation of Qashqai and X-Trail sport utility vehicles at the factory, which already makes 2,000 cars a day, the company said in a statement on Thursday.
"Support and assurances" from the UK government persuaded Nissan to continue investing in the plant, which employs more than 7,000 people, chief executive Carlos Ghosn said in a statement. "I welcome British prime minister Theresa May's commitment to the automotive industry."
Last month, Mr Ghosn said Nissan may ask the UK to compensate it for any negative consequences resulting from Brexit before making any new investments in the Sunderland plant, which exports most of the cars it produces.
Indications that UK prime minister Theresa May favours a so-called "hard Brexit" – gaining greater control over immigration but losing membership of the single market – have raised concerns that UK exports might face tariffs in the EU.
