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Nottingham Post
Nottingham Post
National
Robin Johnson

Toyota halts production at plant over 'acceleration of coronavirus'

Production at car manufacturer Toyota will halt because of the continuing coronavirus pandemic.

The Japanese firm, which has a plant at Burnaston in Derbyshire, issued a statement this morning outlining what will happen and the reasoning behind it, Derbyshire Live reports.

Factories across Europe are being shut and today (March 18), in the UK, production will halt at the end of the day.

Around 2,000 people are employed in the UK for Toyota, making the Corolla.

It is understood that production will initially stop for at least a week.

In the statement released by Toyota Motor Europe, it said: “With the acceleration of the coronavirus in various European countries or regions and the associated ‘lock-down’ measures taken by various national and regional authorities, an uncertain short-term sales outlook and difficulties in logistics and supply chains are being felt and will increase in the next weeks.

“TME has consequently decided to organise a progressive suspension of its vehicle and engines/transmissions production plants in Europe starting on 18 March until further notice.”

The news follows a decision by rival car-maker Nissan to half production at its Sunderland factory, which employs 7,000 people.

Nissan said it had seen a drop in demand as well as problems getting parts from China.

Yesterday, Chancellor of the Exchequer Rishi Sunak revealed £330 billion of loans for businesses, including special support for airlines and the hospitality sector, to help get them through the coronavirus crisis.

The automotive industry is now seeking talks with the Government about what specific support there will be for the sector.

Mike Hawes, is the chief executive of the Society of Motor Manufacturers and Traders, which represents car-makers, including Toyota and Nissan.

He said: “We welcome the additional and significant emergency support for business announced by the Chancellor.

“The UK automotive industry is inherently strong and globally competitive but now stands on the precipice and will urgently need extraordinary measures such as these to avoid falling over the edge.

“We are already seeing plant closures as global demand falls and supply chains are stretched.

“We now seek immediate dialogue with government to agree how such a comprehensive package of measures can ensure business continuity and support for workers.

“The continued success of this industry is critical not just to the country’s economic performance but also to the hundreds of thousands of people across the country who rely on the sector for their livelihoods.”

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