LONDON, Feb 4 (Reuters) – Nissan’s decision to scrap plans to build its next-generation X-Trail model in northern England is “very disappointing”, Prime Minister Theresa May’s spokesman said on Monday.

The company says falling demand for diesel cars in Europe had forced it to invest in other technologies as the segment is hit by levies and crackdowns, warning two months before Brexit that uncertainty is also making plans harder.

“It’s obviously very disappointing. The company has confirmed that no jobs will be lost and they remain committed to the UK,” the spokesman told reporters. (Reporting by William James, writing by Elizabeth Piper)