Nissan and Toyota seeking no-deal reimbursement

Two major Japanese carmakers with UK manufacturing operations will ask for for money from the government if it fails to agree a trade deal with the European Union.

Nikkei financial daily, via Automotive News Europe, is reporting that both Nissan and Toyota will demand reimbursement from the UK government to cover the anticipated cost of tariffs that could be imposed on exports from the UK.

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The carmakers are concerned about the effects of a no-deal Brexit, with Nissan in particular warning that its UK operation – where it produces the Qashqai, Juke and Leaf in Britain's biggest car factory (pictured) – could become unsustainable.

"We urge UK and EU negotiators to work collaboratively towards an orderly, balanced Brexit that will continue to encourage mutually beneficial trade," Nissan said.

Toyota meanwhile builds the Corolla and the Suzuki Swace in Burnaston, Derbyshire, as well as engines at a factory in north Wales.

So far Prime Minister Boris Johnson has said that Britain could cope without a trade deal with the EU, but isn't in favour of such an outcome.

A no-deal Brexit could cost the UK's automotive industry over £100 billion, industry figures said last month.

A two-week negotiation period between the UK and the EU will now take place. If a deal can't be struck, the UK will leave the single market and the trade union on December 31 with no agreement in place.