Major car brand demands new European Union rules as UK risks isolation

It comes as the European Union is moving ahead with plans that would see the UK blocked from certain incentives for the automotive sector.

The Industrial Accelerator Act aims to protect European nations and businesses from the growing influence of China on the car industry.

However, Made in Europe rules would cause issues for the UK, in addition to Norway, Turkey and Switzerland.

Toyota has called on the UK and EU to agree on new terms that guarantee the future of Europe’s automotive competitiveness, without harming individual nations.

Toyota has held a strong foothold in the UK for more than 40 years, with its Burnaston manufacturing plant in Derbyshire.

Yoshihiro Nakata, President and CEO, Toyota Motor Europe, said: “Toyota is not a guest in Europe. We are a European manufacturer, and we want Europe’s automotive industry to succeed.”

Toyota has called for a “Made with Europe” approach that recognises a limited number of trading partners, including the UK and Japan.

It has also backed the introduction of a “more realistic” goal for overall vehicle sales of 70 per cent, rather than 85 per cent.

The manufacturing giant said this would encourage localisation of developing vehicles and parts in Europe, without creating “disproportionate compliance risks”.

A temporary exclusion for fuel-cell vehicles has also been supported by Toyota, which argued that it would give the market and supply chains time to develop before localisation rules are introduced.

Matt Harrison, Chief Corporate Officer, Toyota Motor Europe, warned: “Isolation makes us weaker.

“Europe has the capabilities, the people and the trusted partners to lead, but legislation must reflect the pace at which customers are able and willing to change.

“‘Made with Europe’ is our central request – because together, we are stronger.”