Nissan needs to reapply for U.K. Financial Aid: Minister

February 5, 2019

London--Nissan Motor Co. <7201> needs to make a fresh application if it seeks to receive financial aid from Britain's government now that the firm has decided to scrap its plan to make an SUV model in the country, a British minister said Monday.

Greg Clark, secretary of state for business, energy and industrial strategy, made the remark at a parliamentary meeting after the Japanese automaker announced on Sunday its decision to withdraw the plan to produce the next model of the X-Trail SUV at its Sunderland plant in northeastern Britain due chiefly to uncertainties related to the country's planned exit from the European Union.

The new X-Trail will be manufactured at a plant in the Kyushu southwestern Japan region.

In October 2016, the British government promised to provide Nissan with up to 80 million pounds in financial assistance.

The government decided in June 2018 to extend 61 million pounds to the company on condition that it produces the X-Trail in Britain. Jiji Press