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December 10, 2019 04:06 AM

Nissan's UK plant will be protected after Brexit, Johnson says

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    Reuters

    Boris Johnson talks with staff during a general election campaign visit to Fergusons Transport in northeast England.

    British Prime Minister Boris Johnson put Brexit back at the center of his election campaign during a visit to northeast England, where he promised to protect automakers including Nissan after the UK leaves the European Union.

    Johnson made a general election campaign visit on Monday to Fergusons Transport in Washington, west of Sunderland.

    The logistics company is 6 km (4 miles) from Nissan's UK plant, which is the country's largest car-making factory. The company's website says it was named Nissan UK's best overall logistics provider for 2015/2016.

    Johnson was asked whether he can guarantee the continued existence of the Nissan plant.

    "Of course. It's absolutely vital we protect supply chains, we protect Nissan Motors, we make sure people continue to want to invest in our country," Johnson said. "As we come out it's all protected from the point of view of big motor manufacturing investors in our country."

    Johnson said automakers in the UK will be protected after Brexit, suggesting their supply chains will not be disrupted by Britain's divorce from the European Union.

    Nissan Europe Chairman Gianluca de Ficchy has warned that if a hard Brexit leads to tariffs of 10 percent between the UK and EU, the Sunderland factory's future will be in doubt.

    "If it means the implementation of World Trade Organization tariffs of 10 percent, the overall business equation is not sustainable for us because 70 percent of our vehicles are exported to Europe, he told Automotive News Europe in a recent interview.

    The UK election takes place on Thursday. Polls show Johnson's Tories on course to win a majority, which would mean the British Parliament voting to deliver Brexit by Jan. 31.

    Bloomberg contributed to this report

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