Toyota (LON:TYT) announced Wednesday they are building the next generation of the Auris model car at the Burnaston plant in Derbyshire.
The announcement comes after the Japanese car company promised in March 2017 to invest £240 million in upgrading the Burnaston plant.
It also marks a boost for UK economy despite Brexit. Most of the engines are expected to be built in the Deeside factory in North Wales. In addition, the car giant confirmed they will generate in total 3,000 jobs across the two plants.
Moreover, the car-maker also stressed the importance of maintaining free trade for the future.
“With around 85 percent of our UK vehicle production exported to European markets, continued free and frictionless trade between the UK and Europe will be vital for future success,” said CEO Johan van Zyl.
The news is a good sign for the UK who was warned by the car industry that if they left Europe they will suffer an increase on exports tariffs and on the overall car supply chain.
Nevertheless, other car makers besides Toyota have been making plans to build cars in the UK even after Brexit was announced. Nissan is building the next generation of Qashqai and X-Trail sports utility vehicles at their Sunderland factory and BMW plans to assemble its electric Mini in Oxford.
Toyota announced their full-year results earlier this month with a total sales of 6,678,279 units increasing by 34,893 units compared to 2016. Net revenues were 21.7969 trillion yen, reflecting an increase of 8.1 percent.
Shares were down 0.81 percent, trading at 7,317 JPY, as of 14:50 (GMT).