Executive Briefings

Nissan Seeks More Than $100M Brexit Supply Chain Fund

Nissan has called on the U.K. government to invest millions in attracting car part manufacturers or risk a "house of cards" collapse in the industry post-Brexit.

Colin Lawther, Nissan's head of European manufacturing, told MPs on the International Trade Committee the industry had made a "strong request" for a supply chain investment of between £100m ($122.65m) and £140m ($171.71m), according to the Guardian.

“This is critical — if we don’t really invest in the supply base, it will be a house of cards effect,” he said. “Nissan will not succeed in the future, with or without Brexit, unless the government does something to help us in the supply chain.”

Nissan’s northeastern site is Britain’s largest plant and the fifth most efficient car facility in the world, producing two vehicles a minute and using around 5m parts everyday.

According to the Financial Times, Britain’s car plants are heavily dependent on overseas suppliers for their parts, with almost 60 percent of parts in U.K.-assembled vehicles imported, which leave sites vulnerable to fluctuations in exchange rates and potential tariffs after Britain leaves the E.U.

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Colin Lawther, Nissan's head of European manufacturing, told MPs on the International Trade Committee the industry had made a "strong request" for a supply chain investment of between £100m ($122.65m) and £140m ($171.71m), according to the Guardian.

“This is critical — if we don’t really invest in the supply base, it will be a house of cards effect,” he said. “Nissan will not succeed in the future, with or without Brexit, unless the government does something to help us in the supply chain.”

Nissan’s northeastern site is Britain’s largest plant and the fifth most efficient car facility in the world, producing two vehicles a minute and using around 5m parts everyday.

According to the Financial Times, Britain’s car plants are heavily dependent on overseas suppliers for their parts, with almost 60 percent of parts in U.K.-assembled vehicles imported, which leave sites vulnerable to fluctuations in exchange rates and potential tariffs after Britain leaves the E.U.

Read Full Article