Toyota has warned the government to “lift the fog” surrounding Brexit negotiations and secure a deal that would safeguard the competitiveness of its Derbyshire factory.

The Japanese carmaker said uncertainty over the UK’s post-Brexit trading relationship with the EU was hindering its ability to plan for the future of its business in the UK, where it employs about 3,000 people.

It came as the latest industry figures showed the number of cars built in Britain went into reverse for a fifth month this year in September, with those destined for the UK market plunging by 14.2% in September as Brexit fears hit consumer and business confidence.

Didier Leroy, an executive vice-president of Toyota, said businesses needed to see progress to be able to plan. “The UK government should … understand that we cannot stay in this kind of fog when we don’t know what will be the output of the negotiation. As quick as we can get clarity on that, better will be the way we can prepare [for] the future.”

Speaking at the Tokyo motor show, Leroy said any new import levy imposed on the cars made at its factory in Burnaston, Derbyshire, would have a profound impact on its business.

“Today they [Burnaston] export 80-85% of their production to continental Europe, so if we move to something like an import tax, trade tax or any kind of additional penalty, it will create a big negative impact in terms of competitiveness for this plant,” he said.



Leroy added however that the company had trust in the plant and its workers and would fight hard to make it as competitive as possible, even if there are tariffs.

Leroy’s comments, reported by the Financial Times, reflect the rising anxiety among Britain’s business leaders over the lack of clarity on Brexit, more than seven months after Theresa May triggered article 50.

Multinational companies including banks have signalled a willingness to relocate jobs from the UK to other European towns and cities where they can be certain of continued access to the single market.

“Brexit is the greatest challenge of our times and yet we still don’t have any clarity on what our future relationship with our biggest trading partner will look like, nor detail of the transitional deal being sought,” said Mike Hawes, the chief executive of the Society of Motor Manufacturers and Traders.

“Leaving the EU with no deal would be the worst outcome for our sector so we urge government to deliver on its commitments and safeguard the competitiveness of the industry.”

Figures published by the SMMT showed the number of cars rolling off UK production lines fell 4.1% in September compared with a year earlier, to 153,224. The drop was driven by the sharp fall in domestic demand as well as a 1.1% in vehicles bound for export markets which account for about 80% of the total. In the first nine months of the year, manufacturing fell 2.2% compared with the same period last year, with 1.256m cars made.

As well as the Burnaston plant, where about 180,000 vehicles roll off the production line every year, Toyota makes engines at a factory in Deeside, north Wales.



This year, Toyota announced plans to invest £240m to upgrade equipment and systems Burnaston, where it makes the Auris hatchback and Avensis family car. It warned at the time that tariff-free access from the UK to the continent was vital to the future success of the plant.

In the aftermath of the Brexit vote, the rival Japanese carmaker Nissan also pledged to invest more in its UK plant in Sunderland by building new versions of its Qashqai and X-Trail, but only after its chief executive received private assurances from the government about the UK’s withdrawal from the EU.