Toyota quashes talk of Burnaston cuts

Posted on 27 Aug 2009 by The Manufacturer

Toyota Manufacturing UK has refuted media speculation that production cuts at its parent Toyota would affect production and jobs at its Burnaston plant.

Toyota Manufacturing UK told The Manufacturer that employees at the Derbyshire plant have been told that the company is considering moving all production to a single line. The plant currently operates two lines, with the Auris model on a dedicated second line. This is not expected to affect staff levels, which have been rationalised this year via a voluntary release programme introduced in March. The scheme was requested by staff and 300 employees were released in May and June.

Toyota sales have recently rallied slightly following the success of the car scrappage schemes. Figure were unavailable.

A spokesperson for Toyota Manufacturing said production at the company was at a 12 month low, and a long way short of its 280,000 units per annum capacity. Current forecasts showed no indication that the transfer to a single line, for both Auris and Avensis models, would reduce production from current levels or that demand would fall lower than it is today in the near term.

In April the company introduced a 10 per cent work share programme, with both pay and hours for all staff in all departments reduced by 10 per cent. Following a small spike in sales as a result of the car scrappage scheme, the work share was suspended for August and September, with normal pay and terms reinstated. Work share will resume in October indefinitely. No compulsory redundancies have been made at Toyota Manufacturing UK this year.

Production of the new hybrid Auris at Toyota in Burnaston will commence in mid-2010. On current forecasts it is expected the hybrid cars could also be produced on a single, combined line.