Toyota hands £240m investment boost to UK plant which includes £21m from Government
Business
Toyota hands £240m investment boost to UK plant which includes £21m from Government
Toyota says it is to invest £240m upgrading its car plant at Burnaston in Derbyshire, in what amounts to a vote of confidence after the Brexit vote. As carmakers, including Toyota, scramble to demand tariff-free access to the EU following the split, the company said the money - to improve the factory's competitiveness - included £21.3m of "support" from the UK Government. It would aid training, research and environmental performance, the company said. While such cash is not unusual, that element of the investment will be seen as significant because of efforts by ministers to reassure the sector on the nature of the divorce deal they are seeking from Brussels. The Government's communications with Nissan last year helped reassure the fellow Japanese firm enough to announce the building of new models in Sunderland .
Our automotive sector is one of the most productive in the world and Toyota's decision to invest £240 million upgrading its Burnaston plant is a further boost to the UK auto sector.
Business Secretary Greg Clark
Toyota, which also has an engine plant in Deeside, said Burnaston would be progressively upgraded this year with new equipment, technologies and systems and seek to promote supply chain efficiencies to bring down the cost of importing parts from abroad. They have become more expensive since the EU referendum because of the collapse of the value of the pound. Sterling's weakness is a double-edged sword though as it has made the cost of UK-made cars more competitive abroad. The news will come as a welcome boost for an industry facing a difficult future if the UK leaves the EU without a favourable trade deal.
Continued tariff-and-barrier free market access between the UK and Europe that is predictable and uncomplicated will be vital for future success.
Dr Johan van Zyl, the president and chief executive of Toyota Europe