Toyota has warned a no-deal Brexit, in which a 10 per cent tariff on exports under World Trade Organisation (WTO) terms apply, would put its future UK manufacturing operations in doubt. A senior executive also warned that any prolonged disruption at the ports “would inevitably lead to a production stop, probably within days”.
In a strongly worded warning, Matthew Harrison, executive vice president of sales at Toyota Motor Europe told The Irish Times: “If you have a manufacturing plant that’s sending 95 per cent of its output volume into continental Europe, if you are forced to cope with 10 per cent tariffs, we’re not really in a position to pass that on to an end customer because of the competitiveness of the market. It would be extremely difficult for us to have a competitive, sustainable business operation.”
Toyota has two manufacturing facilities in Britain, a vehicle manufacturing plant in Burnaston, Derbyshire producing the current Corolla hatchback and estate, and an engine plant in Deeside, Wales. The UK manufacturing operation employs over 3,800 workers directly.