Toyota said on Wednesday it will build the next generation of its Auris car in England in a welcome boost to Prime Minister Theresa May as Britain exits the European Union, confirming a previous report.
The firm will make its new Auris hatchback at Burnaston, Derbyshire, replacing the current run of the model made there, the company said in a statement.
Sources last year said Toyota planned to build the model in Britain on the assumption that ministers will secure a transitional deal on the so-called British exit that will be designed to maintain current trading conditions until at least the end of 2020.
Toyota said free trade was important for the future. "With around 85 percent of our U.K. vehicle production exported to European markets, continued free and frictionless trade between the U.K. and Europe will be vital for future success," said Toyota Europe President and CEO Johan van Zyl in Wednesday's statement.
Business minister Greg Clark hailed the announcement and said Britain's automotive sector was one of the most productive in the world, adding "this government will continue work to create the best possible environment."
Carmakers are worried that without the right deal on Brexit, their factories could be subject to tariffs and trade barriers, adding to costs and risking the long-term viability of sites.