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.


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