Downing Street has denied offering Nissan a “sweetheart deal” to boost production at its Sunderland car plant, despite its concerns over the effect of Brexit.
The Japanese giant's decision to build its next-generation Qashqai and add production of the new X-Trail model at the site has eased concerns about the future of the factory after the UK quits the EU.
It followed a meeting between Nissan's chairman, Carlos Ghosn, and Theresa May earlier this month.
Announcing the company's decision to expand production in the North East on Thursday, sustaining 7,000 jobs, he said the move was enabled by “support and assurances” from the Government.
"I welcome British Prime Minister’s commitment to the automotive industry in Britain and to the development of an overall industrial strategy," he added.
It is the first major UK automotive decision since the Brexit vote in June, prompting warnings from Labour over the possibly consequences of any "secret deals" done with individual companies.
Pressed on whether written assurances on compensation for any future EU tariffs had been given, Business Secretary Greg Clark told BBC Radio Four's World At One: “We have had, obviously, as you might imagine, lots of communication between us, but actually, what it rests on is a very strong mutual confidence.
“There is no question of financial compensation over tariffs because we have said that they, what is necessary, is that we are going to maintain the competitiveness of the sector, and we are going to get the best deal possible. We think that the mutual interest between our European neighbours and ourselves is very strong in this way.”
Colin Lawther, Nissan's senior vice president for manufacturing in Europe, denied there was a special deal for the company.
“No, there is no offer of exchange. It's just the commitment from the Government to work with the whole of the automotive industry to make sure that the whole automotive industry in the UK remains competitive,” he told the programme.
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