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Why Toyota, Nissan are said to seek reimbursement from UK if Brexit talks fail

October 5, 2020
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Nissan operates Britain’s biggest car factory in Sunderland, northeast England. The plant’s production includes the Qashqai, Juke and Leaf. Honda also builds the Civic in Swindon, near London, but the company is closing the factory next year.

The plant would be “unsustainable” if Britain leaves the EU without a trade deal, Nissan said in June.

Europe and the U.K.’s car industries last month said a disorderly Brexit would cost the sector 110 billion euros ($130 billion) in lost trade over the next five years.

The stage is set for a showdown on Brexit at a European Union summit this week.

British and EU negotiators on Monday began a two-week period of intense talks to agree a deal. If the two sides cannot reach an agreement by year-end, Britain will leave the EU’s single market and customs union on Dec. 31 without a trade deal in place.

Bloomberg contributed to this report

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