Toyota Motor (TM) intends to build the next version of its Auris car at its British car plant on the assumption that the government secures a transitional Brexit deal, Reuters reported Friday, citing two sources familiar with the matter.
The final decision on the matter is due by the end of the year, the unidentified people familiar with the process told the news agency and also according to a government briefing document released to Reuters under a freedom of information request, the news service said.
Prime Minister Theresa May said last month in a speech in Florence designed to move negotiations forward that she would seek a Brexit transition period of around two years after the U.K. formally leaves the EU in 2019, keeping the U.K. in the Customs Union and the tariff-free single market for that period. Businesses are lobbying for at least three years of transition, according to the Confederation of British Industry, a business organization.
“Toyota UK management has a working assumption that the UK will retain the next generation Auris because it is too early to determine the nature of the trading relationship with the EU,” Reuters said, citing one of the people. “They believe that there will be a transitional period,” the person said, according to the report.
Toyota’s American depositary shares rose 0.8% on Friday morning.