Toyota’s just-in-time production stands at risk with the looming “hard Brexit” in March 2019.
Last year, the Burnaston plant in the U.K. made nearly 150,000 cars, and 90 percent were sent to EU nations. Normally parts are delivered every 37 minutes but if these parts are held up in Customs in Dover and Calais when Brexit kicks in, production could stop for hours or even months.
Other auto makers express similar concerns and are developing alternatives and contingency plans.
Video Spotlight: Toyota Europe CEO: We face logistics problems in case of hard Brexit
This post is based on The Bloomberg article, Carmakers in Paris Issue Stark Warning on Risk of No-Deal Brexit, by Oliver Sachgua, Elisabeth Behrmann, and Tara Patel, October 2, 2018; and The Newswheel article, Toyota warns “No-Deal” Brexit would lead to unprecedented production stalls, by the editor, September 29, 2018; and the YouTube video, Toyota Europe CEO: We face logistics problems in case of hard Brexit | Squawk Box Europe by CNBC Life, October 2, 2018. Image source: Shutterstock / nito.
1. Why is a just-in-time system more at risk with a hard Brexit than a traditional batch-push Continue reading