British Business Secretary Greg Clark said Saturday there are grounds for optimism that Britain will strike a Brexit deal with the European Union, after Japanese carmaker Toyota warned that leaving without an agreement will hit its output.

Just six months before Britain is due to leave the EU on March 29, Prime Minister Theresa May has said talks to clinch a divorce deal are at an impasse.

She has said her "Chequers" proposals are the only viable option, but EU leaders have said key parts of them are unacceptable and many lawmakers in her own Conservative Party have threatened to vote down a deal based on May's blueprint.