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Toyota Warns of Plant Closure if U.K. Fails on Brexit Plan
Toyota Motor Corp. says it will idle its assembly plant in England if the U.K. exits the European Union next spring without a free-trade agreement with the bloc.
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Toyota Motor Corp. says it will idle its assembly plant in Burnaston, England, if the U.K. exits the European Union next spring without a plan to maintain free trade with the bloc.
Plant Manager Marvin Cooke tells BBC News the suspension could last for months if Toyota is forced to restructure its just-in-time supply chain to reckon with new customs inspections resulting from a “hard” Brexit. Cooke says more than half the parts his factory used come from mainland Europe.
He also points out that likely higher tariffs represents a permanent higher operating cost that would erode the plant’s ability to compete.
Last year Toyota invested £240 million ($318 million) in the Burnston complex to prepare it to build the next-generation Corolla sedan. The company also has been adding 400 employees to the 2,500 there already.
The facility had been assembling about 150,000 Auris small five-door hatch and Avensis large cars per year. Most of the plant’s output is exported to the EU.
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