A 2.5% tariff difference appears to have persuaded Nissan Motor to decide against making its newest electric vehicle in the UK for sale in the European Union. A 10% tariff on parts in and cars out would apply only if there was a no deal Brexit but, with two weeks to go, the auto industry still doesn't know what it will face from 1 January.
Nissan will ship the Ariya from Japan when the vehicle goes on sale in the EU next year, the Nikkei reported.
Nikkei said Nissan initially considered making the Ariya at its Sunderland assembly plant in north east England but London and Brussels had yet to sign a free trade agreement, raising the spectre of the vehicle facing a 10% tariff [under WTO terms, and on parts coming from the EU].
Japanese made vehicles will be charged only a 7.5% import tariff under the economic partnership agreement Tokyo signed with the EU until the duty is eliminated in 2026, Nikkei noted.
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