John Moylan Says UK Must Brace Itself For Brexit Woes Despite Toyota Making Britain Part Of Its Long-Term Future
John Moylan, the BBC’s car manufacturing correspondent, says the UK must brace itself for Brexit woes despite Toyota making Britain part of its long-term future. The BBC’s car manufacturing correspondent John Moylan says, despite Toyota announcing plans to upgrade its UK plant with its New Global Architecture, its new system for producing vehicles worldwide, UK car manufacturing must brace itself for Brexit woes. Moylan said that Toyota’s decision suggested the company saw the UK as playing a major part in its global activities but “the UK’s automotive industry knows that Brexit is coming and with it the possibility of tariffs and complex customs arrangements. That threatens the competitiveness of carmakers that rely upon the kind of just-in-time manufacturing which Toyota pioneered.” Moylan’s comments come after Toyota announced that its Burnaston plant in Derbyshire will be boosted by a £240m investment as the production facility is upgraded to its new global platform. Toyota, like other carmakers, have previously enjoyed tariff-free access to the EU and will hope to continue to do so following Britain’s split. This has been important for the Burnaston facility as more than 85% of its output is shipped to mainland Europe. The news of major investment comes as a massive relief to the thousands of workers employed at the facility. But it also suggests optimism post-Brexit. Dr Johan van Zyl, the president and Chief executive of Toyota Europe, said: “We are very focused on securing the global competitiveness of our European plants. This upgrade is a sign of confidence in our employees and suppliers and their focus on superior quality and greater efficiency.” He welcomed a £21m contribution from the UK Government as part of the investment. This “Demonstrates that, as a company, we are doing all we can to raise the competitiveness of our Burnaston plant in Derbyshire. Continued tariff-and-barrier free market access between the UK and Europe that is predictable and uncomplicated will be vital for future success.” “In essence, the £240 million will be spent on upgrading Burnaston’s equipment and systems – rather than adding to the firm’s 3,100-strong workforce,” said the Derby Telegraph’s Robin Johnson. “Toyota is looking to standardise many of the components and processes it uses across its factories – which collectively will help it to produce “This kind of forward-thinking will hopefully off-set any nasty shocks the company may encounter if the UK is unsuccessful in its export tariff negotiations with the EU. It is clear that the top brass at Toyota think very highly of the Burnaston factory and its UK workforce. Back in 2015, they decided to entrust the factory with the production of an updated version of the popular Auris hatchback and the all-new Avensis. Of course, this was all before there was any talk of Brexit.” Business Secretary Greg Clark said Toyota’s investment “underlines the company’s faith in its employees and will help ensure the plant is well positioned for future Toyota models to be made in the UK”. Manufacturing & Engineering Magazine | The Home of Manufacturing Industry News
Porsche’s exclusivity deal with EA may have ended
The long-running agreement between EA and sports car manufacturer Porsche looks like it may have concluded. For several years Porsche has been largely missing from the rosters of the marketâs largest racing games â thatâs why you tend to often see cars from German company RUF, which bases its models on unmarked Porsche chassis. Now GT Planet reports that Porsche branded entertainment manager Sebastian Hornung said the following via a translation when asked about Porscheâs appearance in recent racing sim Assetto Corsa: [Porsche] were always following what was going on in the gaming industry aside from EA. The license with EA runs out this year, because together they arrived at the realization that the current situation was not desirable anymore. The relationship also with other game developers will change after 10 years of absence from pure simulations there is a desire to diversify what is being offered. There have been exceptions to the rule over the years despite EAâs agreement, however, such as with Forza Motorsport 3 and the Porsche DLC for Forza Horizon 2, but Need for Speed has been the only series to consistently feature the brand. Way back in 2011 Turn 10âs Dan Greenawalt confirmed that effort had been made to secure Porsche for Forza 4, but that EA had ultimately blocked the move. Read more at http://www.mcvuk.com/news/read/porsche-s-exclusivity-deal-with-ea-may-have-ended/0176648
UK Car Manufacturing Output Declines in October
According to figures published on the car manufacturing industry, output declined in October with falling domestic demand and strengthening exports strengthening once more. The Society of Motor Manufacturers and Traders (SMMT) said that UK car manufacturing in October fell by 5% on the preceding month and 1% year on year to 151,795 units. Following the 10.6% decline last month, production for the domestic market fell by 10.9% year on year. However domestic demand is still strong despite the fall, with production in the year so far up 3.3% at its highest level since 2005. Out of the total, 122,765 or 80.9% were exported to customers overseas, with exports continuing to rise year on year for the 15th month in succession by 1.7% but compared to September, exports slipped slightly from 123,119 units. Although car production stalled in October, the industry is still in a strong state with more than 1.4 million cars produced so far in 2016, hitting a 17 year record at the same time as uncertainty over the UK industry’s position in the global market post Brexit has prompted manufacturers to urge the government to help protect the sector in trade negotiations. The government has given Nissan promises of “support and assurance” in a bid to persuade the Japanese car manufactuer to build both the new Qashqai and the X-Trail SUV at its plant in Sunderland. Mike Hawes, Chief Executive of SMMT, commented: “Given this dependence on global trade, it is crucial that British-built cars remain attractive to international buyers and exports are not subject to additional tariffs, costs and other barriers to successful trade. It is also essential government ensures there is economic stability and a competitive business environment to ensure we continue to attract the global investment that is behind this performance.”
Vauxhall Opens Police Car Factory at Luton Car Manufacturing Plant
Vauxhall has officially opened its police car factory at its car manufacturing plant in Luton Car Manufacturing Plant, Bedfordshire. The car manufacturer says it is the largest facility of its kind in Europe and will convert 2,500 vehicles every year. These will include cars and vans to be used by Police forces, as well as Ambulance and Fire services throughout the UK. The new site will bring 50 jobs to the area and has been created after moving production in-house from its former location in Millbrook, Bedfordshire. The firm says that supplier companies across the country will also benefit with 90% of blue-light content, the materials used to convert a standard car in to a Police car, sourced from UK suppliers. Among the local companies involved is Luton based Border Engineering, the makers of brackets and AV Engineering in Royston who make fascia mouldings. A number of vehicles will be converted to be used by the emergency services at the facility in Luton with cars including Mokka, Insignia, Astra and Corsa, and CVs, such as Movano, Combo and the Luton built Vivaro vans. Vauxhall says it is the sole manufacturer to offer a one stop shop for blue light vehicles. Everything is done in-house from testing to converting and, eventually, remarketing of decommissioned vehicles. Vauxhallâs Manager of Special Vehicles, Dick Ellam, commented: Through our flexible production facility, Vauxhall is able to offer a one-stop shop purchasing experience to UK emergency services. We can deliver a wide choice of car and van models, specifically designed and rigorously-tested to meet the stringent demands of our emergency services. We can also supply turn-key vehicle solutions that enable rapid turnaround of replacement vehicles, plus we can now offer a unique in-house de-commissioning and re-marketing service. Vauxhall says it is the number one supplier to Police fleets with a 70% market share of competitive segments. Vauxhall Opens Police Car Factory at Luton Car Manufacturing Plant Manufacturing & Engineering Magazine | The Home of Manufacturing Industry News
