Toyota boosts Polish presence amid continued Brexit uncertainty

Toyota wants to increase the production of components for hybrid cars at its plants in Wałbrzych and Jelcz-Laskowice in Lower Silesia, Poland with local media reporting the decision was motivated by continued uncertainty over Brexit. 

Toyota Motor Europe announced that it will invest €140-million in Poland to boost production in Wałbrzych. The 1.5-litre power units built in the Polish plants will be installed in the fourth generation of Toyota Yaris, whose debut on the Polish market is planned for 2020.

The recruitment of additional employees for the Wałbrzych facility is to start next year. An extension to the building will also be required to house the additional factory lines. Production parts will come from from Poland's second Toyota plant - in Jelcz-Laskowice. The entire investment is to be completed by 2022. Between the two plants, Polish production capacity will be increased to 309,000 engines per year.

In a statement, the Japanese auto giant said: “High interest in this (hybrid) technology in Europe, confirmed by rapidly growing sales, which now already amount to over 50 percent of the total volume of orders for Toyota models, resulted in the decision to locate two further investments in our Polish factory."

It also added that the company had chosen Poland for its only other hybrid production and development facility outside Japan.

Although the company made no direct reference to the challenges posed by Brexit, Polish media were quick to point out that ongoing uncertainty over the shape of the UK's withdrawal from the EU and its future relationship with the bloc meant that the company had chosen not to expand production in its British plants.

"So far, rumours have circulated that Toyota will build additional lines in the United Kingdom. We have unofficially found out that Toyota has decided to make these investments in Poland due to the protracted uncertainty about the conditions for the United Kingdom to leave the EU," claimed daily newspaper Gazeta Wyborcza.

Puls Biznesu, a leading Polish economic daily, wrote: “Although Toyota does not want to comment on this, the increase in investment in Poland was also affected by the confusion associated with Brexit.”

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