Nissan has confirmed that the new X-Trail originally planned for its Sunderland plant will instead be made in Japan.
In a letter to workers, the firm says continued Brexit uncertainty is not helping it to "plan for the future".
In 2016 the carmaker said it would build the new car in the UK after "assurances" from the government.
The government said the move was "a blow to the sector and the region" but that no jobs would go.
Nissan has made cars at Sunderland since 1986 and employs almost 7,000 people.
Nissan said: "The company has decided to optimise its investments in Europe by consolidating X-Trail production in Kyushu, the production hub for this global model.
"While we have taken this decision for business reasons, the continued uncertainty around the UK's future relationship with the EU is not helping companies like ours to plan for the future."
UK commitment
Business Secretary Greg Clark said: "Nissan's announcement is no doubt a blow to the sector and the region, but the company has confirmed that no jobs will be lost as this was to be a further significant expansion of the site and the workforce.
"They have reiterated today their commitment to the UK by continuing to manufacture in Sunderland the current Qashqai, Leaf and Juke models and the new Qashqai model from 2020."
Production of the Qashqai - the best-selling crossover vehicle in Europe - makes up the majority of the current work at Sunderland.
There had been concerns that Nissan - part-owned by France's Renault - could move production to France in future to avoid any post-Brexit EU tariffs.
But when the X-Trail investment was initially announced, Nissan said hundreds of jobs would be created at the Sunderland plant.
It sparked questions over whether a deal between the carmaker and the government had been struck, although ministers insisted that no "financial compensation" had been offered.
References: BBC
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