The
European Commission has sent a team to Renault’s plant in Flins, France, to investigate
a claim by the Japanese automaker Nissan that it would be more cost-effective
to make its Micra model there than in its existing plant in Sunderland, North
England, writes the UK’s Financial Times (30/11/00).
According to the FT, the investigation of Renault – which owns 36.8 per cent
of Nissan – comes only weeks before Nissan is to make a final decision as to
whether to move Micra production from Sunderland to a site owned by the French
car manufacturer.
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Nissan cites the strength of sterling as a factor in moving production away
from the UK and has been reported to be pressuring the UK Government into granting
a £40m ($US57m) aid package as an incentive to remain in the UK.
The article reports that the commission – which has expressed concerns about
the necessity of Governmental aid – can block the proposed aid, with Mario Monti,
the competition commissioner, describing it as ‘an evil’.
