Toyota Plans $296 Million Update for British Plant

Toyota Motor Corp. will invest £240 million ($296 million) to prepare its factory in Burnaston, England, to build undisclosed models on a next-generation platform.

The investment is seen as a vote of confidence in England's ability to negotiate tariff-free relations with European countries after the U.K. exits the European Union about two years from now. But Toyota reiterates that the factory's long-term success will hinge on continued favorable trade conditions.

The Bunaston facility currently makes about 180,000 Avensis sedans and Auris five-door hatches per year, primarily for sale in Europe. The Auris is scheduled to go out of production there in about 2020.

Last week Toyota Executive Vice President Didier Leroy told Reuters the company will probably decide next year whether to build a new model at the plant. Toyota says this week’s announced investment will “raise the competitiveness” of the factory, in which the company has invested some £2.5 billion ($3.1 billion) in the past 25 years.