Toyota Motor Corp would not invest in building battery electric vehicles (EVs) in the UK until at least the mid-2030s, dealing a blow to hopes that British auto factories would take a leading role in the move away from fossil fuels.
Toyota Motor Europe chief executive Johan van Zyl said that hybrid vehicles containing both internal combustion engines and battery-powered motors would be the only option for the next round of investment at the company’s plant in Burnaston, Derbyshire.
Production of the Corolla at Burnaston is due to end in 2027, and Toyota has yet to decide to invest in production after that point. That means the first zero-emissions Toyota vehicles would not be built in the UK until 2034 at the earliest, based on the manufacturer’s usual seven-year product cycles.
Photo: AP
Toyota is also preparing to launch multiple zero-emission battery electric vehicles to cater for countries with the strictest rules. This includes the UK, where all hybrids are to be banned by 2035.
Continued production of hybrids with internal combustion engines at Burnaston would be a boon for employment at Toyota’s other UK factory, an engine plant at Deeside.
However, in the longer term the future of both plants, and others in the UK such as BMW AG’s Hams Hall engine plant, could be called into question if they are not favored for investment in zero-emissions technology.
The factory at Burnaston started production of the Corolla hatchback in January last year, after a ￡240 million (US$318 million) investment that was decided in 2017. At the time, the investment was hailed as a vote of confidence, but future spending would be dependent on Toyota’s assessment of post-Brexit trading conditions.
“By 2027, when this Corolla’s life cycle comes to an end, I think it will be not possible to produce a zero-emissions vehicle there,” Van Zyl said. “Therefore it will have to be a hybrid technology vehicle.”
Van Zyl also said that a no-deal Brexit would be harmful for the UK and the EU, with only weeks to go until cross-channel trade moves to new regulations.
Brexit could add to the challenges facing the plant if no deal is agreed and 10 percent tariffs are imposed on Jan. 1. About 90 percent of Burnaston’s products are exported, meaning they would be hit hard by such tariffs.
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