U.K. REASSURANCE FOR TOYOTA
Govt secures £240m investment after providing written commitment, say sources
THE British government helped to secure a more than £240 million (RM1.3 billion) investment from Toyota in its English plant with a letter reassuring the Japanese carmaker over postBrexit trading arrangements, said two sources.
Toyota said on March 16 it would install its new car platform at its Burnaston plant. One source, who is familiar with the letter, said Toyota delayed the decision due by the end of December while it weighed up a number of factors, including Brexit.
The business ministry has confirmed the existence of a letter but refused to release it.
The source said the letter was similar to one sent to Japanese carmaker Nissan last year when it decided to build two new models at its northern English plant.
The document sparked public and lawmaker concern about secretive deals.
The source said it contained several reassurances.
“They received a similar set of warm words as Nissan on electric vehicles, commitment to further training and to ensure the competitiveness of the UK automotive industry,” said the source.
A Toyota spokesman declined to comment on whether it had received such a letter. He referred to the company’s March 16 statement which said the British government was providing funding for training and research and development.
Toyota also said at the time “continued tariff-and-barrier free market access... will be vital for future success”.
Britain said in March it would back up the investment from Toyota, which builds roughly 10 per cent of Britain’s 1.7 million cars, by spending £21.3 million to support skills and training, research and development and innovation, subject to an independent assessment. Reuters