(Bloomberg) -- Toyota Motor Corp. will close its Burnaston factory on Nov. 1, giving it a one-day pause to prepare its operations for any disruption from the U.K.'s scheduled exit from the European Union.
The company plans to resume production at the plant, which produces the Corolla sedan, on the following Monday, Nov. 4, Chris O'Keefe, senior manager for external relations at Toyota Motor Europe said in a phone interview. No production will be lost, and Toyota will build up two days worth of inventory, O'Keefe said.
The U.K. is scheduled to leave the trading bloc on Oct. 31, and Prime Minister Boris Johnson has threatened to exit without a deal if he's unable to renegotiate current terms. U.K. carmakers have been saying since the 2016 referendum on Britain's EU membership that a no-deal split would be a disaster. Production fell in July for the 14th straight month as exports cratered 15%, according to the Society of Motor Manufacturers and Traders.
The plant's ability to remain competitive depends on maintaining its so-called just-in-time inventory management system, O'Keefe said. Typically, it holds just 4 1/2 hours worth of inventory. It will be temporarily increased to two days' worth to ease the Brexit transition, he said.
To contact the reporter on this story: Siddharth Philip in London at sphilip3@bloomberg.net
To contact the editor responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net
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