DEBATE: Is Brexit likely to be the biggest factor behind Nissan decision?

The failure of Britain's government so far to negotiate a smooth exit plan from the European Union has made car manufacturers less willing to use Britain as a European manufacturing centre

Nissan said it took the decision on the X-Trail for business reasons, with continued uncertainty surrounding future UK-European Union relations "not helping".

Government may "review" a £60m funding package created to secure production of the new Nissan X-Trail at the manufacturer's Sunderland plant after plans were revealed to build the SUV in Japan.

In the Commons, Clark said: "Nissan confirmed that production of the new Qashqai, Juke and Leaf will continue at Sunderland and there are no implications of the decision for existing jobs at the plant".

In a letter from business minister Greg Clark to then Nissan boss Carlos Ghosn, the British government also promised to protect the auto sector as Britain leaves the European Union.

The Government has made bolstering manufacturing linked to Nissan in Sunderland a priority, offering the company £80m in the wake of the Brexit vote in 2016 to safeguard the vehicle maker's investments in the north east.

U.K. Business Secretary Greg Clark - a proponent of keeping close economic ties with the European Union - said Monday that Nissan regarded the risk of a no-deal Brexit as "a source of damaging uncertainty". But it's not expected to be the last as Brexit uncertainty bites. The next generation X-Trail will instead be made in in Japan.

European Union rules out Brexit renegotiation despite UK Parliament vote
The British tabloid papers declared Mrs May a victor after the House of Commons voted to remove the so-called Irish border backstop from the Brexit deal.

Officials from Unite met with management at the Sunderland plant and expressed their "anger and disappointment" over how the announcement over future production of the X-Trail was handled.

This comes after the carmaker said in 2016, it would build the new vehicle model in the United Kingdom after "assurances" from the government. Opened in 1986 by former Prime Minister Margaret Thatcher who celebrated Britain's role as a gateway to Europe, the facility now produces roughly one in three British cars.

On Feb. 1, an EU-Japan free trade agreement also kicked in, which includes the EU's commitment to removing tariffs of 10 percent on imported Japanese cars, diminishing part of the business case for building in Europe. Supply chains would be snarled and shipments could be delayed at the border.

Nissan had given some of the comments regarding its decision by saying that since the year 2016, the auto industry has been facing a changed environment in Europe dramatically which included the change in emissions of the regulations.

In contrast, the company is pressing ahead with its other investments in Sunderland, including the next-generation Juke and Qashqai, and its best-selling electric auto, the Leaf.

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