September 29, 2018 06:01 CET
Toyota anticipates halting production at its UK factory if Britain leaves the European Union without a trade deal, the plant’s managing director, Marvin Cooke, told the BBC.
Toyota’s factory in Burnaston, central England, 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..
In February, Toyota said it will build the next generation of its compact car in Burnaston to replace the current model there. The new generation will change its name from Auris to Corolla when it goes on sale early next year.
“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 said in an interview with the BBC posted on its website. “It could be hours, days, weeks — even months.”
UK businesses are getting increasingly skittish about the prospects a no-deal Brexit, with less than 200 days until the country is set to leave. BMW and Jaguar Land Rover have warned about production disruptions if the the UK 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.
Toyota’s warning comes as the ruling Conservative party’s annual conference is about to start. The party fault-line on how how best to deliver Brexit was further highlighted yesterday when former foreign secretary Boris Johnson set out his own Brexit plan while rubbishing Prime Minister Theresa May’s own vision.
Prime Minister Theresa May’s proposal was rejected by European leaders earlier this month, forcing her to come up with a new Brexit plan that both the EU and the warring factions in her party can accept.
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