According to a report by The Financial Times, there is a 75% chance of Toyota pulling out of the UK after 52% of the populous voted to leave.
The report claimed that “the economics for Toyota making cars in a tiny market that only account for less than 2% of their total vehicle sales” would be the primary reason for the Japanese automotive giant to pull out.
The report also claimed that it will be “nearly impossible” for Toyota to make a profit here.
The FT say that the decision to quit Britain “will take years, even as long as a decade,” and that Toyota will also wait to see what kind of trade agreements Britain flesh out with the EU before making a move.
Pros & Cons
Toyota made a statement as soon as the Brexit results were confirmed last Friday, saying it will “closely monitor and analyse” the impact leaving the EU will have on its business operations here in Britain.
Earlier this week, the Society of Motor Manufacturers and Traders highlighted data that demonstrated what a sound year 2015 was for the British car industry.
The Society of Motor Manufacturers and Traders said that the success was made possible because of the UK’s access to the single market, access which is now dependent on the outcome of future discussions and agreements.
The FT also claim that Honda are likely to pull out of the UK.
