Published 19:37 IST, February 3rd 2019

Nissan cancels investment plan for UK plant

Japanese car manufacturer Nissan announced on Sunday it was cancelling plans to build its X-Trail SUV at its plant in northeast England despite Brexit assurances from the government.

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Japanese car manufacturer Nissan anunced on Sunday it was cancelling plans to build its X-Trail SUV at its plant in rast England despite Brexit assurances from government.

"While we have taken this decision for business reasons, continued uncertainty around UK's future relationship with EU is t helping companies like ours to plan for future," Nissan Europe Chairman Gianluca de Ficchy said in a statement.

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"We appreciate this will be disappointing for our UK team and partners," he ded. "Our workforce in Sunderland has our full confidence." 

car giant anunced in 2016 that it planned to build model at its plant in Sunderland, but will w assemble it inste at Nissan's global production hub in Kyushu, Japan.

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"Or future models planned for Nissan Sunderland Plant -- next-generation Juke and Qashqai -- are unaffected" by decision, according to statement.

company said it h decided to shift investment away from British plant, and towards developing vehicle techlogy.

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"A model like X-Trail is manufactured in multiple locations globally, and can refore be re-evaluated based on changes to business environment," explained Hideyuki Sakamoto, Nissan's executive vice president for manufacturing and supply chain manment.

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Local MP Bridget Phillipson, tweeted that reports "represent deeply troubling news for rth east ecomy -- So many jobs and livelihoods depend on Nissan's success." 

car giant is a major employer in region, a former industrial powerhouse that has suffered deces of ecomic decline, and which voted heavily in favour of Brexit.

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Labour MP Julie Elliott said Brexit h played an "inevitable role" in decision, ding: "ne of it is conducive to encouraging business investment in this country".

Nissan employs almost 7,000 people at Sunderland plant -- its largest in Europe -- which has produced cars since 1986.

Current production includes LEAF electric car, which reached production of 46,989 units last year.

Or multinational giants, including, Airbus warned this week that British jobs could suffer in event of an unfavourable outcome.

scenario of Britain exiting European Union without a "divorce" deal is becoming ever-more possible as clock runs down official departure date of March 29.

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19:37 IST, February 3rd 2019