Oct 01, 2018 (Japan Times) - Toyota Motor Corp. anticipates halting production at its Midlands U.K. factory in the event Britain leaves the European Union without a deal, the plants managing director, Marvin Cooke, told the BBC.
The Japanese company operates the Burnaston car plant that produced 150,000 vehicles last year, with about 90 percent of the units shipped to the EU, while components come the other way, the BBC reported. The factory has 2,500 employees, according to the company’s website.
“My view is that if Britain crashes out of the EU at the end of March, we will see production stops in our factory,’ Cooke, head of the plant that makes the Auris and Avensis cars, said in an interview with the BBC posted on its website. “It could be hours, days, weeks — even months.â€
Responding to Toyota’s warning, British Business Secretary Greg Clark said Saturday there are grounds for optimism that Britain will strike a Brexit deal with the European Union.
“Of course we want a deal,†Clark told BBC radio. “No one should be under any illusion that the prime minister and our negotiating team are absolutely determined … . There are grounds for optimism that we can reach an agreement on this,†he added.
U.K. businesses are getting increasingly skittish about the prospects of a no-deal Brexit, with less than 200 days until the country is set to leave.
Manufacturers from Siemens Gamesa Renewable Energy SA to BMW AG have warned about production disruptions if the U.K. leaves without an agreement. The British Chambers of Commerce warned Friday that most businesses have yet to carry out a risk assessment on the impact of Brexit.
