The European Commission is asking the UK Government to explain about the assurances it gave to Nissan that prompted the carmaker to commit for building two new models at its Sunderland factory.
Nissan CEO Carlos Ghosn recently met UK’s Prime Minister Theresa May.
The company threatened to move the production of its new models from out of the UK, after fearing that the country could impose higher taxes when it leaves the Europen Union.
But, the company since then has settled its fears and is willing to stay back. This decision ensures that about 7000 people directly dependent on Nissan and over 28,000 people indirectly dependent on the company's supply chain will not lose their jobs or business.
Until now, it is unclear what kind of agreement has been struck by the UK government and Nissan.
In October, Ghosn welcomed May’s commitment towards the automotive industry in the UK and to develop an overall industrial strategy.
Ghosn said the support and assurances from the UK government helped the company to decide on continuing with the production of new cars in UK.
Commenting on the latest developments, a Commission spokesman said: "The UK authorities have not notified any support to Nissan for assessment under our state aid rules and we've therefore not taken any formal view of this matter.
“We follow events, we read newspapers and press reports and if we see something interesting, then we ask questions.”
It is now a question as to what are the assurances that were given by UK government to Nissan.
So far, the UK has not given any official statement with regards to the assurances given to the company.
According to the EU rules, any member country, giving any such treatment or aid will be fined and the company will be forced to pay back any such money taken.
