Nissan set to increase UK market share under hard Brexit scenario

Nissan has drawn up a plan to increase the UK market share and reduce it in Europe if Brexit leads to tariffs on vehicle exports.

The plan means the company would double down on the UK in that case since it believes it could sell one in five cars.

According to sources who spoke to the Financial Times, the contingency plan would see Nissan close its struggling Barcelona van facility and stop manufacturing in France.

This would be beneficial to the Sunderland plant in the UK which would be maintained as part of an audacious attempt to steal market share from other carmakers as Nissan would have a competitive edge that brands such as Ford or Volkswagen would lose.

The carmaker hopes to increase its market share from 4% to up to 20%.

The Nissan spokesman for Europe denied the existence of any plan: “We deny such a contingency plan exists. We’ve modelled every possible ramification of Brexit and the fact remains that our entire business both in the UK and in Europe is not sustainable in the event of WTO tariffs.

“We continue to urge UK and EU negotiators to work collaboratively towards an orderly balanced Brexit that will continue to encourage mutually beneficial trade.”

EU negotiators have said and will insist during the transition period that market access for the UK will be directly linked to Britain’s willingness to align with the bloc’s regulations when it unveils its proposals.

A report on Monday from Rabobank on the claims made by the Financial Times read: "It is clear that for thousands of business across the UK and Europe, there is a lot riding on the outcome of the UK/EU future arrangement talks. Until more clarity emerges we expect GBP to be vulnerable."