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

By REUTERS | 30 August 2019


LONDON: Toyota 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.

In a separate development, a fire broke out at the headquarters of Toyota in western Japan’s Toyota City today.

Toyota Motor Corp was investigating the blaze, believed to have broken out in the technology development division, said a company spokesman.

Public broadcaster NHK showed images of people evacuating the building, although there appeared to be little sign of smoke.

Toyota City is about 320km west of Tokyo, and near the city of Nagoya.

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