Toyota Confirms to Produce Next Generation Auris in UK Plant

Japanese carmaker Toyota Motor Corp. on Wednesday decided to commit the production of the new edition of its compact hatchback vehicle Auris in the UK, providing Britain a welcome boost, as it prepares to exit from the European Union (EU).

The company will construct the next generation Auris hatchbacks in its manufacturing plant in Burnaston, Derbyshire, with its Deeside factory in North Wales taking the role of main supplier for its engines. The production overall will require very limited additional spending.  

The decision will also help secure 3,000 jobs across the two sites, which has built 4 million cars and 5 million engines in the last 25 years.  

Toyota is the latest auto firm to decide building more vehicles in the UK, since the Brexit vote in June 2016.  

Toyota Europe President and chief executive Dr. Johan van Zyl stated that the announcement serves as a representation of their confidence in the skills and capabilities of their Toyota UK team.   

Earlier production of the vehicle, which was also done in Derbyshire, is expected to be moved elsewhere.

Last year, Toyota was reportedly planning to manufacture Auris in the UK, provided that ministers will be granted a transitional Brexit deal that will uphold current trading provision until at least the end of 2020.

The Japanese auto firm believed that free trade was vital for the future success, with van Zyl saying that with about 85 percent of their vehicle production exported to European markets, and that sustained free and frictionless trade between Britain and Europe will be important.

The new Auris will be publicly introduced at the Geneva Motor Show next week.

Carmakers Fear over an Uncertain Brexit Deal

Carmakers in the UK have grown concerned that an unsuccessful Brexit agreement would negatively impact their production plant in the country, from being subjected to tariffs on exports to possibly disrupting most of its European supply chain.

As a result, some have feared that a number of auto companies would leave the UK because of Brexit if new trade matters put their competitive position at risk.

Manufacturers have already cautioned that anything that could weaken the UK plants will also reduce their chances of winning future models.

Industry data showed Toyota’s Burnaston plant built 144,000 units last year, which fell short by 20 percent from 2016.

Toyota currently has about 2,500 employees at Burnaston, while another 590 are working at Deeside.

The government has promised to do all it can to help the industry’s competitiveness after Brexit, as well as an investment of up to £21.3 million ($29.46 million) in Toyota’s re-tooling project.  

Investment in the automobile sector has been down by half in the two years since the voting was announced. It fell from $2.35 billion in 2016 to $1.52 billion last year, as car companies, along with their suppliers, decided to delay all except the most important spending decisions.

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