Toyota: Plant Closures To Spread To Europe

Bertel Schmitt
by Bertel Schmitt

“Toyota is considering halting production at its factory at Burnaston, near Derby, because of collapsing sales amid the car company’s recall crisis,” London’s Times reports.

This comes on the heels of reported plans to shut two down two plants in the United States for a total of 14 days. According to the Times, Toyota is “reviewing production at its European factories.”

Toyotas recall led to “a collapse in sales for the world’s largest carmaker,” as the Times put it. The January numbers published by ACEA do not reflect a EU-wide collapse of Toyota sales. Toyota held its 5.4 share of the European market. But that was before all hell broke loose.

Toyota’s British plant in Burnaston (Avensis, Auris) employs 3,500 people. Toyota’s engine factory in Deeside gives jobs to another 500. Toyota had already announced plans last month to cut one in five of its workers at Burnaston because of tumbling production levels.

Elsewhere in Europe, Toyota has production plants in France, (Yaris), in Turkey, (Verso and Auris), and in the Czech Republic (Aygo).

Toyota said it wants to mothball at least one production line in Europe.

Whereas the US is in a Toyota frenzy, all quiet at the European front. No official figures of incidents in the UK relating to faulty Toyotas have been released by Vosa, the British vehicle safety agency, nor by the UK Department for Transport. Toyota sais it has no reports of deaths relating to faulty vehicles anywhere in Europe.

However, the European car market is consolidating with the cash-for-clunkers initiatives being phased out. Bad headlines from the U.S. on top of a shrinking market are not inducive to great sales.

And while we are looking at Toyota from a British perspective, read this one. It might convince you to take the train instead. If those darned trains would just stay on track.

Update: According to the Derby Telegraph, “a spokeswoman for the Burnaston plant said that the company was not considering shutting the factory.” Well, halting production and shutting the factory are different. Or maybe, the Times is wrong.

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • Tricky Dicky Tricky Dicky on Feb 17, 2010

    Ms. Levecque - Toyota makes the Aygo in a JV with PSA (107 and C1) in the Czech Republic. These vehicles are all fitted with the common suspect brake pedal. I don't think that anybody can seriously blame an assembler for a design flaw. As for the dealer comments about the gas pedal Riko, you can hardly blame them. So many customers who turn up in a dealership have failed to read a manual, do the obvious, would like to offset a stupid mistake by blaming the car manufacturer, etc. As there are no known reports of any customers being involved in an accident due to one of the 3 recent recalls (only 2 are happening in Europe), then the dealer really didn't have any information on which to judge your wife's complaint. We all know something more about it now, but it's bizarre to criticise them for something they couldn't possibly know about at the time. I expect those dealers were as shocked as everybody else by the size and extent of this recall.

    • See 2 previous
    • Riko Riko on Feb 18, 2010

      Tricky, Yes, Toyota in France KNEW there was a problem with the gas pedal for a while. The second week she had the car (March)it would not start. She called the 800 number and the first thing they said 'did you block the gas pedel?' No she did not. They sent out a repair truck and the guy (non Toyota employee)said they are having a lot of problems with sticky accelorators and Toyotas. This non-starting problem with the gas pedal has happened at least five times leaving her stranded. When she called the garage and asked if the problem might be because she had the CTS pedal, they screamed at her how could she possibly know what kind of pedal she had. Well after looking at the TTAC web photos and looking at her car she said she knew eactly what kind of pedal she had. The Toyota garage's answer was still she did not know how to drive.

  • Crash sled Crash sled on Feb 17, 2010

    Gotta love those Toyota guys. Volumes down? Cut overhead and expense immediately. Probably not much savings available in Europe, I suspect, as they've likely got the equivalent of the UAW job bank... at least. Here? Feel the burn, baby.

  • FreedMike Meanwhile...Tesla's market share and YTD sales continue to decline, in an EV market that just set yet another quarterly sales record. Earth to Musk: stop with the political blather, stop with the pie-in-the-sky product promises, and start figuring out how to do a better job growing your business with good solid product that people want. Instead of a $30,000 self driving taxi that depends on all kinds of tech that isn't anywhere near ready for prime time, how about a $30,000 basic EV that depends on tech you already perfected? That will build your business; showing up at Trump rallies won't.
  • 28-Cars-Later "Here in Washington state they want to pass a law dictating what tires you can buy or not." Uh, waht?
  • Tassos NEVER. All season tires are perfectly adequate here in the Snowbelt MI. EVEN if none of my cars have FWD or AWD or 4WD but the most challenging of all, RWD, as all REAL cars should.
  • Gray Here in Washington state they want to pass a law dictating what tires you can buy or not. They want to push economy tires in a northern state full of rain and snow. Everything in my driveway wears all terrains. I'm not giving that up for an up to 3 percent difference.
  • 1995 SC I remember when Elon could do no wrong. Then we learned his politics and he can now do no right. And we is SpaceX always left out of his list of companies?
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