Carmaker Nissan has scrapped plans to build its new X-Trail SUV in Britain and will produce it exclusively in Japan, warning two months before Brexit that uncertainty over Britain's departure was making it harder to plan for the future.
Nissan said Sunderland will, however, continue to manufacture several Nissan models.
The main production plant for the current X-Trail is in Japan, while Nissan's plant in Sunderland, northeast England, makes the smaller Qashqai SUV and other models.
Staring at an uncertain future of the automotive industry in Britain, Gianluca de Ficchy, Chairman of Nissan Europe, said, 'While we have taken this decision for business reasons, the continued uncertainty around the UK's future relationship with the European Union is not helping companies like ours to plan for the future'.
"Nissan can build the auto in Japan and export to Europe, and because of the new EU-Japanese trade deal, that will be increasingly tariff-free", said David Bailey, professor of industrial strategy at Aston University.
According to Sky News, the company will confirm the move to cancel plans to build the new version of the SUV on Monday, just 53 days before Britain is scheduled to leave the EU. A spokesman said: "Nissan does not comment on rumour or speculation".
Sunderland Central MP Julie Elliott said Nissan's decision was "devastating news for our city and the region".
Ariana Grande Tried To Fix Her Tattoo, But Just Made It Worse
On Thursday, Ariana revealed that she had suffered through pain to add more characters that she thought would fix the problem. Ariana finally got her tattoo updated on Wednesday and updated its new pictures on her Instagram story.
There will be no job losses as a result of this announcement, but the new jobs expected will not materialise.
In addition, Gianluca de Ficchy added that uncertainty over Brexit has not helped the firm "plan for the future".
Production of diesel cars was down by 22% to 561,000 past year.
Having described himself as the "lightning rod for the anti-Brexit brigade", the prominent Brexiteer who ran Theresa May's leadership campaign cautioned against blaming the Japanese vehicle company's decision to move the project from its Sunderland plant on the UK's European Union exit.
Current production in Sunderland includes the Nissan Leaf, Europe's best-selling electric vehicle, which reached a record 46,989 units last year, up 177 per cent from the previous year, according to the company. The X-Trail production plans had been announced in the autumn of 2016.
The decision not to build the auto at a site that employs more than 7,000 people and supports another 28,000 supplier jobs comes as a particular blow after Prime Minister Theresa May's government had previously gone out on a limb to safeguard Nissan's investment in the United Kingdom, making private assurances that led to accusations of back-door deals.