Toyota warns Brexit may increase prices of its UK-built cars

Toyota warns Brexit may increase prices of its UK-built cars image

The Japanese automaker said that, if UK exited the European Union, the company would be forced to increase its prices because of additional levies.

Nearly all the automakers with operations in the United Kingdom have already spoken out against a Brexit move and Toyota is now raising its voice once again, as the referendum is around the corner. The world’s largest automaker said Britain leaving the bloc would translate into levies of as much as 10 percent on the cars it builds in the country. With such extra duties, Toyota warned it would probably have to cut costs or make its cars more expensive, thus affecting its sales. Its concerns were expressed in a letter sent this week to its UK employees and seen by Bloomberg. The automaker, which opened its UK plant in 1992, employs 3,000 people there and exports around 90 percent of its vehicles. The company recently made a legal complaint, as its logo has been used by the official Brexit campaign appearing on the “Vote Leave” flyers.

Michael Hawes, CEO the Society of Motor Manufacturers and Traders, said that, if UK decided on June 23 to leave the Community, exports to the EU could draw extra costs up to 100 billion dollars for the local industry. Nissan is another major Japanese automaker with massive operations in Britain and it was the biggest producer of the auto sector until last year, when it was overpassed by Jaguar Land Rover.

Via Bloomberg

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