Toyota is to build all its new generation C-segment family sized hatchback models at its UK Burnaston car plant in Derbyshire.

Prime Minister David Cameron welcomed the news of Toyota’s further investment in British manufacturing and jobs. He said: “This major announcement from Toyota is fantastic news and a massive vote of confidence for UK manufacturing. This investment and the jobs it will create provide a terrific boost not just to the local economy but to the whole country, and is a tribute to the great skill, hard work and sheer professionalism shown by the Toyota workforce. Toyota’s commitment to the UK shows the growing strength of the UK car industry – it is our great British success story. It is vital that we build a more balanced economy, one with manufacturing, innovation and exports at its heart. The automotive sector is leading the way in helping us achieve this – it is an extraordinary success story and one that we are very proud of.”

Didier Leroy, Toyota Motor Europe President and CEO, said: “Toyota has a long and successful record of building vehicles and engines in the UK and our facilities here are among the finest in the world in terms of efficiency and environmental performance. The investment we are making will secure a dynamic future for TMUK as a leading manufacturing centre for our core models in Europe. It also supports our commitment to delivering superior quality vehicles and contributes to Toyota’s sustainable growth in Europe. We are not only making a significant investment in our own operations and workforce here, but also sustaining our supplier network in the UK. We know that together we can build vehicles that deliver the highest standards of quality, reliability and environmental efficiency.”

In addition to announcing consolidation of C-segment hatchback production at TMUK, Toyota has also announced Toyota Motor Manufacturing Turkey, which currently builds the Verso compact MPV and shares production of the Auris hatchback, will become its European centre for C-segment saloon production. These moves are designed to maximise production efficiency and increase local production of vehicles sold in Europe.

“These measures are designed to help Toyota secure significant sales in the C-segment, the most competitive part of the European new car market,” said Leroy.

Tony Walker, TMUK Deputy Managing Director, said: “This is great news for Burnaston and Deeside. It will safeguard our current employment levels and create up to 1,500 additional jobs in the next two years, with the first phase of recruiting 500 members starting in the middle of next year.

“The decision to bring all production of new generation C-segment hatchbacks to Britain reflects on the excellent work done by our members in delivering the highest standards in productivity and quality. Going beyond our own operations, there will also be benefits for our local communities and regions, safeguarding thousands of jobs in the UK supply chain.”

Together with the Avensis saloon and tourer, hatchback production at Burnaston will consolidate TMUK’s position as a leading manufacturing centre for Toyota’s core models for Europe and will further strengthen Britain’s status as an exporter; about 85 per cent of TMUK engine and vehicle production is shipped to Europe and other world markets.

Toyota will invest around £100 million in tooling and equipment at the Burnaston vehicle plant. This will take Toyota’s total investment in its UK manufacturing business to more than £2.1 billion since it was established as the company’s first European production centre in 1989. In addition, a further £85 million will be invested in the UK supply chain.

TMUK has consistently been in the forefront of efficient manufacturing, through effective implementation of the Toyota Production System, and Burnaston enjoys a special status as one of Toyota’s global Sustainable Plants, setting industry standards in cleaner, low carbon production and the harnessing of sustainable energy sources. Toyota’s achievements in the UK include zero waste to landfill and incineration whilst significantly reducing the amount of energy and water required to build each vehicle. In July this year Toyota achieved another UK industry first with the inauguration of Britain’s largest industrial solar panel array, capable of capturing up to 4.6 million kWh of sustainable energy every year – enough to build around 7,000 cars.

Toyota’s investment in manufacturing and the production of cleaner, more efficient vehicles such as the Auris Hybrid, fall in line with the British Government’s ambitions both for a stronger manufacturing sector and a low carbon society. The UK-built Auris Hybrid is the first full-hybrid car to be built in Europe and first to bring the low emissions benefits of hybrid power to the family hatchback market.