Automotive - - Mar 16,2017
The global automaker, Toyota, would be soon upgrading its UK plant which manufactures the Avensis and Auris models with a whopping investment of £240m.
The Japanese carmaker has announced a significant investment in the UK plant located near Derby. This fresh move is aimed to produce vehicles using the company’s new global manufacturing system.
At present, the factory manages a staff of about 2,500 people. Burnaston made about 180,000 vehicles in the previous year, a major share of the production are exported to Europe and other prominent markets.
Chief executive of Toyota Motor Europe, Johan van Zyl, said the investment indicated that the firm was undertaking everything it could manage to make Burnaston grow more competitive.
According to Business Secretary Greg Clark, Toyota's investment emphasizes the “company's faith in its employees”. He further added this move will ensure the plant is well established for future Toyota models to be manufactured in the UK.
It is interesting to know that, a funding worth £21.3m is offered by the UK government for research, training and development, as well as refining the Burnaston-based plant's environmental performance.
However, there are scares surrounding the UK's automotive industry since the Brexit process is underway. There are heavy possibilities of tariffs and complex customs arrangements which can prove crucial.
Johan van Zyl also warned that "continued tariff-and-barrier free market access between the UK and Europe that is predictable and uncomplicated will be vital for future success."
In January, Toyota declared it was ready to spend $10bn (£8.2bn) in the United States in the next five years.
The automaker also faced a huge shocker last year when its crown of being the world's biggest carmaker was taken over by Volkswagen.
Toyota also said last month that it was expecting net profits of 1.7 trillion yen ($15.1bn; £12.1bn) for the financial year 2016-17.