Toyota chairman warns of the dangers of “no-deal” Brexit

The chairman of Toyota, Akio Toyoda, has warned that the automotive industry will inevitably suffer if talks break down on the terms of the UK’s withdrawal from the European Union. “Spiralling logistics and production costs” will hit company profits and force up car prices, Toyoda warned in a statement.

While expressing his “respect and appreciation” for the efforts of the UK government and European Union representatives in trying to reach an agreement, Toyoda stressed how high the stakes were for his company and others in the automotive sector.

“If no withdrawal agreement is reached and the transition period through December 2020 is consequently not implemented, corporate activities and consumers will be adversely affected by the impacts of suspended production activities resulting from failed just-in-time logistics operations, declines in revenue, and revised vehicle sales prices caused by spiralling logistics and production costs,” he commented. “We hope that both the UK and EU governments will continue to make maximum efforts to reach a satisfactory settlement and that a “withdrawal without agreement” is avoided at all costs. We also ask that flexible responses be implemented to ensure a smooth transition for all relevant systems following the UK’s withdrawal, enabling minimal impacts on business activities.”