Toyota: Disruption of Trade Following Brexit ‘Biggest Concern’
Automaker joins others in warning of potential negative fallout if no-deal Brexit becomes a reality starting this April.
Over the past couple of years, the United Kingdom has been working slowly towards leaving the European Union to stand on its own, otherwise known as Brexit. Since the day the gears were set into motion, the potential for disaster in the transition has grown.
One of those disasters involves the automotive industry. According to Bloomberg, Toyota is the latest to join a handful of automakers with European and British bases to warn of possible disruptions in trade should a no-deal Brexit occur at the start of April 2019. According to a study conducted by IHS Automotive, Brexit might ultimately cost vehicle manufacturers more than $2.8 million in sales in the next two years.
“We’ve always believed that, as a company, we believe in free trade,” said Toyota Motor Europe CEO Johan Van Zyl. “In Europe, for instance, we are not a big exporter of vehicles. We are supplying mainly the European market. From that point of view, our biggest concern, of course, would be any trade issues between the U.K. and the European market in the future. That will have a big impact on us.”
Toyota’s partner, BMW, is planning to move some of its vehicle production from the U.K. to Europe should things go south on Brexit. CEO Harald Krueger added that his company has gone as far as to stockpile parts “in case of a disruption in our supply chain.” Build reserves range from two days to a weeks worth, depending on the part.
Whatever happens, Toyota will be able to sell its Hiluxes, RAV4s, and C-HRs in mainland Europe with little issue.