Vehicle manufacturing in the UK has gone from strength to strength in recent years as increasing numbers of international car companies have channelled investment into the country.
One of the largest investors this year, Japanese manufacturer Toyota, is now beginning to see a return on the money it has used to improve its UK facilities resulting in a raised annual profit forecast as demand for the family cars rocketed internationally in the past few months.
Originally, Toyota forecast a new profit of 760 billion yen from sales around the world, yet steps towards sales recovery in the US and Japan has raised this prediction to 780 billion yen, or £66 billion.
The improved sales in the US and Japan have also contributed massively to a 221 per cent profit increase in the July to September quarter when compared to the same period last year.
Net profits during the quarter totalled 257.9 billion yen – a rise from 80.4 billion yen from the same quarter in 2011, when the earthquake and tsunami in Japan caused a drop in production. These natural disasters caused disruptions in the supply chain, meaning that although the company’s plants suffered minimal damage, the components required for constructing vehicles simply could not get through.
Executive vice president of the car company, Satoshi Ozawa, is keen to point out that the manufacturer has recovered from the difficulties of last year and is now working at full capacity once more.
He says; “For the first six months of this financial year, we have seen a significant increase in production in all regions compared to the same period last year when we suffered parts-supply shortages.”
Toyota have also announced plans to begin the manufacture of the new Auris model in its UK factory, despite the fact that it has scaled back expectations for sales in Europe amidst the on-going Eurozone crisis. Whilst sales rose by 51,000 vehicles to 412,000 in the last quarter when compared to the same period last year, now that the financial crisis is hitting some of Europe’s larger economies Toyota believe that sales may slow and have planned for this accordingly.
However, Toyota is keen to make use of the large cash injection of £185 million into its manufacturing and supply chain in the UK – much of which was channelled into its plant in Burnaston, Derbyshire where the manufacturing of the new Auris will take place. The investment allowed Toyota to create a further 800 jobs in the area, boosting its UK employment statistics greatly.
Didier Leroy, president and chief executive of Toyota Motor Europe, believes that operations in the UK will allow the Japanese company to expand in Europe, with the investments made over the past year showing the manufacturer’s commitment to Britain.
He said; “The new Auris is at the heart of our European strategy and we expect it to strengthen our sales performance in the family car market.
“Our Toyota Motor UK members at Burnaston and the Deeside engine plant continue to demonstrate that they can deliver superior quality and efficiency that are vital for building our presence in a highly competitive marketplace.”
Do you think that Toyota will be able to boost European sales with the launch of the new Auris, or do you think that consumer spending has been reined in to the point that a new car is a luxury that few households can afford?
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