Toyota Motor Corp., the world's largest automaker, warned a withdrawal by Britain from the European Union may lead to levies of as much as 10 percent on the cars it builds in the U.K.
Brexit would challenge Toyota to cut costs or make its cars more expensive and hurt sales, the automaker said in a letter Monday to its U.K. employees. Toyota provided a copy of the letter, which says the company exports almost 90 percent of the vehicles it builds in the U.K., and three-quarters of the cars are sold in the EU.
"Continued British membership of the EU is best for our operations and our long-term competitiveness," Toyota said in the letter, signed by two executives at its U.K. manufacturing unit and a trade union representative. "We will face significant business challenges as a result of a decision to withdraw from the EU."
Having invested $59 billion in the U.K., Japan Inc. has been vocal in its support of Britain staying within the 28-nation trading bloc ahead of Thursday's referendum.
Nissan Motor Co. Chief Executive Officer Carlos Ghosn has said Britain staying part of the EU makes the most sense for jobs, trade and costs, while Hitachi Ltd. Chairman Hiroaki Nakanishi has said Brexit may force the company to "rethink" its U.K. operations.