Japanese firm warns failure to reach a deal for leaving EU could have major impact on its Burnaston plant
James Attwood, digital editor
29 September 2018

A no-deal Brexit could potentially stop production at Toyota’s plant near Derby for “months”, the manufacturer has warned.

The Japanese firm’s Burnaston factory currently makes the Auris and Avensis models, and produces around 150,000 cars per year – the bulk of which are exported to the European Union. Toyota has recently invested £250million in Burnaston ahead of production of the new Corolla starting there later this year. It is also hiring 400 staff, to join the 2500 who currently work there.

The firm relies heavily on a ‘just in time’ production method, using components imported from elsewhere in the EU. The plant’s boss, Marvin Cooke, told the BBC that a failure to reach an agreement over Britain’s withdrawal from the EU could have a major impact.

Brexit: what it means for the UK car industry

“My view is that if Britain crashes out of the EU at the end of March we will see production stops in our factory,” said Cooke. Asked how long the disruption could last, he added: “We can’t predict. It could be hours, days, weeks or even months.”

Cooke added that the possible introduction of import and export tariffs between the UK and EU would “add permanent costs to our business”. He added: “That would reduce the number of cars made in the UK, and that would cost jobs.”

Brexit concerns grow as UK manufacturing decline continues

A UK government spokesperson told the BBC that it was still confident a Brexit deal would be reached.

Toyota is the latest car firm to voice fears over the impact of a no-deal Brexit on UK production. Mini will close its Oxford plant for a month following Brexit, bringing forward a planned closure, while Honda is understood to be looking at stockpiling key components. Toyota says its production process makes it impossible for the firm to hold more than a day’s worth of inventory. 

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17

29 September 2018

 29 March 2019, that’s D-Day, Mrs May better get it sorted or she’ll be out faster than she got in!.

Peter Cavellini.

29 September 2018
If politicians got on with a pragmatic approach and stopped playing politics with Brexit. We would already have a deal. But no remoaners are more interested in ruining the government to have something to blame on Brexit.

29 September 2018

2 brexit scaremongering articles in 3 days? the previous one about total uk output willfully ignored the fact that the reduced production was nothing out of the ordinary, if you look at historical data we're actually doing absolutely fine in this regard. This one is full of "could", and other such vague conviction, while mentioning job losses; even though almost everyone knows that car plants have an amount of people on temporary contracts for the exact purpose of easy layoffs when needed. Jobs were lost because of dieselgate, but brexit somehow got dragged in to that. Politicians keeping themselves in the news, putting on a show, trying to make it look like they've "got a sweat on". Fall for it if you want

29 September 2018

Waiting for Symanski’s authoritative verdict on this!

30 September 2018
TheDriver wrote:

Waiting for Symanski’s authoritative verdict on this!

 

Management of the car companies who know their business or politicians who are known liars?

 

Right now in the electronics industry there are huge shortages in generic parts.   The types you wouldn't believe would ever cause you a problem.   Buyers are tearing their hair out.   Even from going from quoting to ordering the parts are going out of stock.   Lead times?   In some cases over a year.   Alternatives?   Yes, but always at a cost penalty.

 

And that's what will happen with Brexit and goods stuck at ports.   They'll find another way to get them in; fly them in if they have to.   But it all adds delays and all adds costs.   Multiply that for all the parts that are on a car and you can see how big a headache it will become.   Production could become staccato.

 

Britain with Brexit is going to be uncompetitive compared with Europe.   We already have trade deals through the EU that we would envy post Brexit; the types that Boris and Farage tells us we'd have - we already have!   Sales to the US aren't suddenly ramp up to compensate because there's nothing stopping that now.   And don't be fooled about the US being our saviour either; they're putting up barriers too.

 

What do we get but more bluff and bluster from a busted Boris?   His lies have been exposed.   UKIP and Farage's too.   Here's the ever popular fact check.

 

Immigration - Immigrants make more than a third more than the cost of providing services to them, and more of them are likely to be in work than the indigenous populous.

 

£14bn paid to the EU - It's acutally £8bn because the EU then pays for projects in the UK.   And the UK economy has lost far more than the cost of our club membership in business investments going elsewhere and tax revenue.   Compare the £274bn of trade we do with the EU for £8bn (which covers more than trade) to the £ 4bn we pay to South Africa for access to £17bn of trade.   It's a bargain!

 

EU Council unelected - Actually, the EU Council is made up from a represenative from every EU member nation, 28 in total.   The selection process varies from country to country, but every one is put forward by the people we've voted to represent us, our governments.   Then our MEPs have to vote them in, again, the people we voted to represent us.   And finally the EU President is also voted in by our MEPs, yes, those we've voted to represent us.   And the EU Council does the work put to them by our governments and MEPs.

 

 

29 September 2018

If the senior management are incapable of contingency planning (if we get a deal anything like May wants there is nothing to plan for, leaving just the hard Brexit situation to consider) then they should step down now and people be appointed that do have the skills, such as planning some short term stockpiling, looking into tooling up some UK manufacturers for critical parts ect.

Brexit sorts out the 'can't do' chaff from the 'can do' elite.

29 September 2018

It's no different than a bus saying £350m a week will be poured in to the NHS.

Headlines are all we ever hear from the news, from industry  from pro and anti protestors - when the bloody hell ius anyone going to hold these spokesmen to account?

Just tell me WHY production is going to be affected. I ask all you pro and anti Brexit folk to ignore the headline and look at the content - there may be no delay, a few hours delay, a few days, a week , a month...   IN OTHER WORDS THEY HAVE AS MUCH A CLUE ABOUT THIS AS YOU OR ME.

The article is a non-story - it says nothing, yet many people reading it will point the finger and use it as another example of why Brexit is a bad idea.

It simply amazes me how the rest of the world manages to function outside the EU.

29 September 2018

Er, i think the government should know what is going to happen by now - obviously too busy being strong and stable....

Who should pay the cost of excess contingency inventory whilst sourcing/tooling up/volume proving for local supply is very naive given how little time is left.

It is very unusual for the Japanese to get involved/comment on political issues so maybe this shows how serious this is.

29 September 2018

considering the hogh globalisation of  car ,engine and parts manufacture with BMW 4 cylinder  engines and many of Fords engines Uk produced and auto gearboxes and castings coming from Germany etc all would eit encourage onshore production again ,Ford ,Peogeot and and the Germans would be wetting their pants.Like wise with food and other goods like the tow bar factory in Wales due to close and set up in Eastern Europe.

29 September 2018

All the commenters saying this is a non-story...beggars belief. Toyota, JLR etc are simpy after certainty..that's what planning requires. Without it, what can you plan for? Huge delays for parts required for JustInTime production? Tariffs on parts that come from Europe? It's really not some kind of Elite conspiracy, as the Trump-like idiots want you to believe. These companies are warning that things are likely to go t*ts up with a hard-Brexit and the Brexit gammons are sitting in denial. 

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