European Commission raises questions about UK's assurances to Nissan

The European Commission has asked Britain about the assurances it gave to Nissan that prompted the carmaker to commit to building two new models at its Sunderland factory.

A spokesperson for the European Commission said on Wednesday that the EU executive has asked for details regarding the nature of the deal and how Nissan would not suffer when the Britain leaves the trading block.

The Commission said it is in contact with the UK.

"The UK authorities have not notified any support to Nissan for assessment under our state aid rules and we've therefore not taken any formal view of this matter."

“We follow events, we read newspapers and press reports and if we see something interesting, then we ask questions.”

As Britain is still a member, it is still governed by EU state aid rules, meaning it cannot favour certain companies.

Nissan’s decision to invest in the plant, which safeguarded about 7,000 jobs and 28,000 from the supply chain, was made after its chief executive Carlos Ghosn lobbied for guarantees to protect the carmaker from the impact of the Brexit vote and was given assurances by Prime Minister Theresa May.

In October, Ghosn said he welcomed May's "commitment to the automotive industry in Britain and to the development of an overall industrial strategy.

“The support and assurances of the UK government enabled us to decide that the next generation Qashqai and X-Trail will be produced at Sunderland.”

What assurances the government had given to Ghosn are yet to be revealed.

Shares in Nissan Motor were up 0.39% to 8.82 cents at 1004 GMT.