Sky News has reported that Toyota is preparing to build a new model in the UK in late 2020.

Toyota will make hybrid electric vehicles on behalf of Suzuki. It will be manufactured at its Burnaston plant in Derbyshire, with engines provided from its site in North Wales.

The new Suzuki model it is to produce will be based on its Corolla Wagon.

The Japanese manufacturer has said that production will not lead to any more jobs or investments, but will increase the utilisation rate at Toyota’s car factory, providing reassurance as Brexit hangs over the sector.

Toyota Manufacturing UK (TMUK) managing director Marvin Cooke said: “This is good news for our UK plants and demonstrates Toyota’s trust in the capability of our workforce to deliver the highest levels of superior quality products.

“Seeking to produce additional volume for other customers is one example of all the efforts we are making to keep our UK manufacturing operations as competitive as they can be.”

The car maker’s announcement – which was first reported by the Financial Times – did not alter its previously stated concerns about Brexit. Toyota is worried about the impact of a no-deal Brexit.

The car manufacturer currently employs 3,200 people at its Burnaston and Deeside plants and two years ago invested £240m to upgrade the Burnaston site to produce the new Corolla.

The industry has faced a number of challenges as a result of Brexit uncertainty. Honda is to close its plant in Swindon and Nissan has scrapped plans to build a new X-Trail model in Sunderland. Jaguar Land Rover also said earlier this year that it planned to cute 4,500 jobs.

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