Toyota to invest eur 265 million in Europe to produce new generation c-segment hatchback in uk and add C-segment Sedan production in Turkey

Toyota announced today two important production changes aimed at optimising the efficiency of its European manufacturing plants and increasing localisation for this strategic segment for Europe. Production of the hatchback version of its European-produced C-segment vehicles (petrol, diesel and hybrid) will be consolidated at Toyota Motor Manufacturing UK (TMUK). Currently, the Toyota Auris is produced both in TMMT (petrol and diesel versions) and at TMUK (petrol, diesel and hybrid versions). In addition, Toyota will produce its C-segment sedan at Toyota Motor Manufacturing Turkey (TMMT). 

These production changes will lead to new investments and higher employment levels at both factories. The combined additional investment to implement the change will be around EUR 265 million for both factories. TMUK expects to recruit up to 1,500 additional workers, with a first recruitment phase of around 500 from the middle of 2012. TMMT expects to recruit an additional 400 workers within two years, starting in the latter part of 2012.

The Toyota Auris is currently produced at TMUK and at TMMT. By regrouping production of the next generation C-segment hatchback in one single plant (TMUK), Toyota will achieve a higher utilisation ratio of the existing production capacity at the plant, hereby leading to higher efficiency. Furthermore, TMUK will continue producing the Toyota Avensis, on the same line.

In a related announcement, Toyota is planning to produce its C-segment sedan at TMMT, its plant in Sakarya, Turkey. The C-segment sedan will be built alongside the Toyota Verso, the other vehicle made by TMMT.

This change of production strategy is set to take place within the next two years. It will increase the total volume of C-segment cars produced in Europe.

"This announcement further endorses the importance of TMUK and TMMT as production centres for Toyota in Europe and is in line with our plan to increase local production for cars sold in Europe," said Didier Leroy, President and CEO of Toyota Motor Europe. "The C-segment hatchback is a core vehicle for Toyota, competing in a strategic segment of the European automobile market, while sedans are stronger sellers in Eastern Europe, Turkey and other countries in that region. We are confident that our factories in UK and Turkey, supported by committed workers and suppliers, will continue to deliver superior quality vehicles and contribute to Toyota's sustainable growth in Europe in the future."

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About Toyota Motor Manufacturing UK (TMUK) 

TMUK started production in 1992 on two sites: engine plant in Deeside (North Wales) and passenger car plant in Burnaston (Derbyshire). Vehicle production passed the three million mark in June 2010. TMUK is a model sustainable plant for Toyota in Europe, which minimises the use of natural resources and exists in harmony with its natural environment. TMUK currently employs about 3,100 employees across both production sites, and represents a total investment of about GBP 2 billion. In 2010, TMUK started production of the Auris with hybrid synergy drive, the first full hybrid vehicle to be produced in Europe, and produced 68,743 Auris and 68,366 Avensis vehicles.

About Toyota Motor Manufacturing Turkey (TMMT)

Located in Arifiye, Sakarya province, TMMT started production in 1994. The plant currently employs about 2,700 employees, and represents a total investment of about EUR 1.2 billion. In 2010, TMMT produced 40,350 Verso and 42,936 Auris.