Toyota will invest 240M into a United Kingdom Plant at Burnaston to build a new production line for the Toyota Auris.
The investment is expected to create over 500 jobs and will allow the production of a new vehicle class at the facility. The first vehicle will be produced in 2018, with the first models available for sale in 2019.
Production of the Auris will be phased out at Toyota’s current United Kingdom plant in Burnaston by 2019 as work begins on building a new production line and installing equipment for the first phase of the project.
The second phase of development which is planned to commence in 2021 will see an upgrade to general assembly operations and full implementation of Toyota New Global Architecture (TNGA), a new flexible and integrated production system that will allow the production of multiple vehicles derivatives from the same line.
The TNGA was developed by Toyota over the past five years in response to changes in market trends, including ‘growing customer demand for more diverse body types and ‘the need for cars that are safer, more fun-to-drive, more environmentally friendly, and can be produced in greater volumes.
TNGA aims to improve the competitiveness of Toyota’s production system by producing multiple derivative models from a single line which will increase efficiency.
Toyota expects that 80 percent of vehicles it produces in Japan will have some components produced locally by 2020, with 70 percent having all key components produced at plants in Japan by 2025.
Toyota will also work to increase localization throughout its global manufacturing operations.
A Toyota spokesperson said that ‘with this investment, Toyota is demonstrating the long-term commitment to the UK it has always had and reaffirming its trust in Burnaston as a great place to make cars’. He added that ‘this decision means we are on track to building the next generation Auris at Burnaston, safeguarding both our workforce and the long-term future of the plant’.
Toyota is also expected to work with suppliers in the local area and promote its UK-based operations.
Burnaston Plant is Toyota’s third plant in Europe and is currently responsible for Toyota’s local production and manufacture of the Auris.
Toyota will now be able to produce a wider range of models at Burnaston as well as increasing competitiveness and efficiency across its global manufacturing operations. The investment is expected to create over 500 jobs and increase the percentage of locally produced key components from 30 percent to 80 percent by 2020.
Toyota has produced cars at Burnaston since 1992 when it began the UK’s first car production line with 100 percent local parts content. By 2015 this figure had risen to 47 percent. Last year, Burnaston employees produced over 200,000 vehicles on three shifts with no days of downtime – a regularity that has helped Toyota maintain and increase its market share in the UK.
Toyota’s United Kingdom operations started in December 1989, and now include a network of 10 suppliers and four engineering companies as well as the Burnaston plant. All production at Toyota’s engine manufacturing facility in Deeside also falls under this remit. In addition to making engines for the Auris, Corolla, and GT86, the plant produces engines for Land Rover, Jaguar, Ford, and Volvo.
The company also has a wide network of suppliers in the UK which it says sustains more than 50,000 direct jobs. Toyota is a major investor in its local supply chain which further supports British manufacturing. The TNGA will be applied to almost all of Toyota’s models across the world.
This announcement follows Toyota’s 21 million investment into its plant in Burnaston last year which saw new equipment installed on the current production line to help improve quality control, further reduce vehicle weight and enhance environmental performance.
Burnaston is also home to the Engine Manufacturing Centre (EMC) which produces engines for UK-based models.
Toyota has invested over 250 million pounds in Burnaston since 1992, creating more than 1,000 jobs. With this latest round of investment Toyota is expecting to create up to 500 new jobs at the plant by 2020.
The TNGA will allow Toyota to integrate production of different body types using the same line. For example, an SUV and a hatchback would be produced on the same line, sharing equipment and reducing production costs. It will also allow Toyota to produce more models from its existing line which will increase efficiency and flexibility.
Toyota’s main European plant is based in Valenciennes, France where it manufactures approximately 450,000 vehicles per year.
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