Falling demand for diesel vehicles in Europe has forced Nissan to invest in other technologies and cut costs. The company cut hundreds of jobs at its plant in Sunderland in the north of England, Britain's largest auto plant, last year when production fell 11 percent due to high taxes and tough diesel measures.
“Nissan has increased its investments in new transmissions and technologies for its future European vehicles,” the company said. “Therefore, the company decided to optimize its investments in Europe by consolidating X-Trail production in Kyushu.”
Nissan produces about 30 percent of the country's 1.52 million vehicles, and the vast majority are exported to the continent.
The automaker's planned investment in the next-generation Juke and Qashqai, which was announced in 2016, has remained unchanged, Nissan said on Sunday.
This announcement comes two days after the entry into force of the Japan-EU Free Trade Agreement, which includes the European Union's commitment to abolish 10 percent tariffs on imported Japanese cars.
