The European Nissan LEAF is produced in Sunderland, UK

The Nissan LEAF is the best-selling electric car of any kind in Europe this year, but that won't necessarily be the case after 29 March 2019 at 11 p.m. when Brexit becomes fact.

The European Automobile Manufacturers' Association (ACEA) warns that without an agreement between the UK and the European Union, the general WTO rules will apply a 10% tariff to all cars traded between the EU and the UK. 10% would make a significant difference to the value proposition, especially when competition strengthens (new models).

Erik Jonnaert, Secretary General of the European Automobile Manufacturers’ Association (ACEA) said:

“Some of our members are also planning a temporary post-Brexit production shutdown. But the harsh fact is that no amount of contingency planning can realistically cover all the gaps left by the UK’s withdrawal from the EU on WTO terms.” Under WTO rules, a 10% tariff would be applied to all cars traded between the EU and the UK. Jonnaert: “We cannot forget that profit margins in our industry are significantly lower than 10%. At the end of the day, these extra costs will either be passed on to the consumer or will have to be absorbed by the manufacturers.”

Nissan Sunderland Plant

In the worst case scenario, Nissan LEAF produced in the UK for countries in European Union will become 10% more expensive (at least if other factors do not absorb the tariff).

We are not sure about any changes in the case of Norway (the Nissan LEAF's biggest market in Europe) or Switzerland, which are outside of the EU (there could be no difference), but for sure LEAF's business case in Europe is currently uncertain.

This also might impact the arrival of the 60 kWh battery version model of the LEAF in Europe.

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