Nissan and Toyota have demanded compensation from the government if the UK enters a ‘no deal’ Brexit on January 1st, which would see a 10% trade tariff on goods made in the UK and sold in Europe. Both car makers say the government should pay the 10% if it cannot reach a deal with the EU.
Nissan is the bigger manufacturer in the UK, building the Juke and Qashqai SUVs at its plant in Sunderland, as well as the Leaf electric car. Toyota produces the Corolla at its plant in Burnaston, Derbyshire. Honda is closing its Swindon plant early next year.
In the event of a no deal Brexit, the UK would operate under the World Trade Organisation tariff, which adds 10% to goods sold abroad, which could have a devastating effect on the popularity of Nissan and Toyota cars outside the Britain. It’s estimated a no deal Brexit could cost the UK car industry around £100 billion over five years.
Keyword: Nissan and Toyota demand compensation in the event of a ‘no deal’ Brexit