Nissan, (TYO: 7201) one of the leading innovators in the electric car industry have just formalized plans to build the next generation Juke at their main plant in Sunderland, despite Brexit looming.

As the Brexit deadline draws closer and closer, the risk to start operations in Sunderland by the Japanese car giant shows faith in Britain’s ability to pull through a period of speculation. Despite a fluctuating currency and a tense political climate.

Nissan’s Chairman of European Operations Gianluca de Ficchy said that “Thirty-five years ago Nissan decided to create a plant in the UK to serve our European markets,”. He added “The new Juke represents a further 100 million pound investment in our Sunderland plant and is designed, engineered and manufactured in the UK for European customers,”

Nissan do not seem to be phased by the stalling talks between the UK and EU, having spent £100 million on their latest investment to shift Juke production to Sunderland.

Whilst Britain’s future in the EU seems uncertain, seniors at Nissan are not phased by the political climate. Colin Lawther, Nissan’s European manufacturing boss told legislators in 2017 “As those circumstances change – and we will not wait until the end of the process – we will continually review the decisions that we take based on anything that materially changes.”

Nissan’s stock price during trading on Friday stayed relatively constant, and peaked at 669JPY, showing a 1.86% rise.

The Japanese carmaker currently employs 30,000 jobs people in Britain and holds 6,000 employees in the main manufacturing plant, located in Sunderland.

Although Nissan have agreed for the Juke production to switch to the UK, senior members have acknowledged the risks associated.

De Ficchy said “If no deal means the sudden application of WTO [terms] we know that our business model [in Europe] won’t be sustainable in the future.”

The Nissan Sunderland plant has grown to be the biggest manufacturing plant in the UK and has produced over 10 million cars since the opening in 1986 during the Thatcher years.

The decision by Nissan to make this change was confirmed back in 2015, showing how major investment decisions are made years in advance.

Nissan have publicly admitted the risk in this move to the UK, and whilst legislators in Parliament try and push through a deal, the impacts of Brexit have had a decline on the UK car market.

Much will be have to be done in order to reassure workers that their jobs are safe.

If a No Deal Brexit does happen, then Nissan (TYO: 7201), Aston Martin (LON: AML) and Rolls Royce could face tariffs on vehicles, engines and spare components.

Additionally, the No Deal could add customs delays which stops immediate production, stall the supply line and risk the long term prospects of British Manufacturing.

Ficchy noted “if a 10% export tariff was introduced after the UK left the EU it would put its operations “in jeopardy”.

Legislators have promised to help UK manufacturers prepare for Brexit on the 31st. A media spokesperson said on behalf of the Department of Business, Energy and Sustainable Trading “We continue to work closely with the sector as they get ready for Brexit on 31 October.”

As the car industry is the UK’s biggest exporter of goods, the sustainability of manufacturing in Britain will be put to the test.

It will be seen whether firms like Nissan move their production sites to have access to EU manufacturing regulations.