Toyota won't build cars at UK factory the day after Brexit


© Reuters. The logo of Toyota carmaker is seen on a car in Nice

LONDON (Reuters) – Japan’s Toyota (T:) will not build cars at its British factory the day after Britain leaves the European Union as part of plans to handle any disruption from a potentially disorderly Brexit.

The autos sector, Britain’s biggest exporter of goods, has been one of the most vociferous opponents of a no-deal Brexit, warning that production would be hit with tariffs, border delays and new bureaucracy, ruining the viability of plants.

Prime Minister Boris Johnson has promised that Britain will leave the European Union on Oct. 31 with or without a deal.

Toyota built just over 8% of Britain’s 1.52 million cars last year at its Burnaston factory in Derbyshire and began production of its new Corolla model there earlier this year.

“We will have a production pause on the first day of Brexit, which is Friday 1st, and… then we will restart production on the Monday and the Tuesday,” said a spokesman.

“We don’t know what the actual situation will be like. We’ve already pulled forward a couple of days of extra inventory which we will then use on the Monday and Tuesday and we will have to see what the situation is after that,” he said.

British car factories are integrated into supply chains which can stretch around the world and operate just-in-time manufacturing processes which mean some parts arrive minutes before being fitted onto vehicles rolling off production lines.

Toyota said no volume would be lost from the pause in output.

READ  Thyssenkrupp and Tata Offer Remedies to Win EU Deal Approval
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here