Sunday,
July 16, 2000
Toyota Seeks To Turn Around Embattled U.K. Plant
TOKYO (Nikkei)--Toyota Motor Corp. plans a series of
measures to turn around operations at its U.K. assembly
plant, which is suffering from a strong pound, The Nihon
Keizai Shimbun learned Sunday.
The U.K. unit will soon raise the percentage of parts
sourced from Euroland to more than 30% from the current
20%. It will also raise the prices of exports to other
European nations, company sources said.
Sterling's strength against the euro has hurt the
competitiveness of exports to continental Europe. Honda
Motor Co., too, is revamping its U.K. operations by
purchasing more components from outside Britain.
Toyota Motor Manufacturing (UK) Ltd. makes about
178,000 vehicles a year, including the Corolla and
Avencis models. The U.K. firm will boost imports from
continental vendors due to supply Toyota's French plant
when it kicks off production early next year. Many
components for the remodeled Corolla, which will hit the
market next year, will also be bought from continental
Europe.
Toyota will also raise the export prices of
British-made cars in 1-3% increments.
Toyota also intends to boost production at its
Turkish plant, which is operating at well below
capacity, for supply to Euroland.
The company says it may divide its joint venture with
a major Turkish firm into production and marketing units
and raise Toyota's control over the production arm. |