Toyota to Increase UK Production by 30% in U-Turn on Investment Plans

Toyota has announced that it will increase production in the UK by 30% in an apparent reversal of its decision to scale back investment in Britain. The Japanese carmaker will lift output from its Burnaston, Derbyshire, plant from 170,000 cars a year to 220,000, creating an additional 300 jobs. This move marks a rare boost to the beleaguered car industry, coming ahead of the expected loss of the Micra from Nissan's Sunderland plant and as Vauxhall and Ford prepare to close factories.

Key Takeaways:

• Toyota will increase production at its Burnaston, Derbyshire, plant from 170,000 cars a year to 220,000, creating 300 new jobs.
• The move is a 30% increase in production and is a rare boost to the UK car industry.
• Toyota's UK plant will not become profitable on its own, but the increased production will offset some of its fixed overhead costs.
• The company is to boost output next year by adding a three-door version of the Corolla to its production line.
• Sir Ken Jackson, general secretary of the AEEU, has welcomed the decision, saying it's a good way to deal with the challenges faced by carmakers.
• Toyota's Burnaston plant is the second-most productive car factory in Europe.
• Nissan is awaiting a formal offer of £40 million state aid for Sunderland before deciding whether to build the new Micra in the North East.

Statistics:

• 30% increase in production
• 220,000 cars per year production target
• 300 new jobs created
• £52 million loss by Toyota in the UK last year
• £40 million state aid offered to Sunderland by the government

Sources:

• The Times, 2001 (cited as The Times file, page 29)
• No other sources explicitly mentioned in the provided text.