The Nissan test: can we really negotiate Brexit sector by sector?

I wrote last month that a key test of Brexit success will be whether Nissan is still making cars here in ten years’ time. A few days later, Nissan chief Carlos Ghosn issued a warning that ‘If I need to make an investment in the next few months and I can’t wait until the end of Brexit, then I have to make a deal with the UK government.’ The investment decision he referred to — expected by Christmas, which means before Brexit talks even begin — is whether to build the next Qashqai model at Sunderland or in France, to avoid tariffs on exports when we leave the single market. And the deal he was fishing for was a promise of compensation if tariffs are imposed.

What’s at stake is huge: the wider UK automotive sector supports 800,000 jobs. Nissan’s Sunderland plant accounts for almost a third of all UK car production, and three quarters of its output goes to Europe.