ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Companies

Toyota says no-deal Brexit could halt UK production

Customs checks would risk holding up needed parts from Europe

Toyota Motor's Burnaston plant in central England, which produced 130,000 vehicles last year, relies on a steady flow of parts from continental Europe.   © Reuters

NAGOYA -- Toyota Motor warned Wednesday that it could be forced to suspend production in the U.K. if the country leaves the European Union with no agreement on the terms of its departure.

The Japanese automaker's Burnaston plant in central England, which churned out 130,000 vehicles last year, uses 150 trucks' worth of parts per day. A third of this comes from continental Europe, and these shipments would likely be subject to tariffs and customs checks in the event of a no-deal Brexit.

Under Toyota's just-in-time model, the plant stocks only a few hours' worth of parts at a time. "If even one component does not arrive, we will be forced to halt production," said Shigeki Tomoyama, an executive vice president.

Tomoyama said a no-deal Brexit should be avoided "at all costs," a view also expressed by President Akio Toyoda last fall.

BMW and Honda Motor plan to shut down U.K. production temporarily after Brexit. Nissan Motor scrapped plans to build the X-Trail sport utility vehicle in the U.K., citing the "continued uncertainty" around the country's relationship with the EU.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media