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It follows notice from Nissan that it is withdrawing investment from its Sunderland plant and the announcement of job cuts by Jaguar Land Rover and Ford. There are lots of reasons for this retrenchment. Globally, there has been a stall in car sales combined with a glut in production. The VW emissions scandal has seen sales of diesel cars plummet.
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So there are clearly bigger, longer-term trends at play than Brexit. Japanese cars first came to Britain in the s when demand started to surge. With the domestic car industry unable to increase production and meet this demand, Datsuns now owned by Nissan became popular — not least because of their superior build quality. Japanese car makers went on to establish a position in the market in the UK and across Europe and opened purpose-built plants in the UK, which became some of the most efficient in the world.
When Margaret Thatcher was prime minister in the s she promoted Britain as a gateway to Europe.
Honda has come out and said that Brexit was not the cause of the decision to close the plant in With Theresa May refusing to rule out a no-deal Brexit, it is incredibly difficult not to see it as a major factor pushing Honda to this conclusion. Honda is intent on developing its electric car range and is currently faced with the decision of where to do it.
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