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Toyota Cautions About Midlands Hub Closure With No-Deal Brexit
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Toyota Motor Corporation (TM - Free Report) expects closing of production at its U.K. factory if Britain exits without any deal from the European Union (EU), per Bloomberg. Once closed, the company is uncertain of the plant’s reopening, which may take months. Incapability to ship parts required for car production from Europe has impelled Toyota to opt for this plan.
In 2017, the company’s factory, based in the Midlands, manufactured 150,000 Auris and Avensis cars, with components shipped from the EU. Toyota follows just-in delivery system for parts, which arrive at the site minutes or hours before vehicle assembling. Of the total vehicles produced, approximately 90% were shipped to the countries in the EU. Per the company’s website, the hub currently employs 2,500 people.
Except for Toyota, many automakers raised concerns on the uncertainty of cross-border tariffs if Britain exits the EU without a deal. Companies have warned about manufacturing disruptions due to tariffs and high chances of free trade loss.
Similar to Toyota, BMW AG announced its decision to shut down its Mini plant in England for a month after Brexit on Mar 29. Another major Japanese automaker, Honda Motor Co., Ltd. announced that a no-deal exit would be very expensive for the company.
Price Performance
In the past six months, Toyota’s stock has lost 1.6%, outperforming 8.3% decrease recorded by the industry it belongs to.
Zacks Rank & Key Picks
Toyota currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Advance Auto Parts, Inc. (AAP - Free Report) , Navistar International Corporation and Cummins Inc. (CMI - Free Report) . Advance Auto Parts sports Zacks Rank #1 (Strong Buy) while Navistar and Cummins carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Advance Auto Parts has an expected long-term growth rate of 12.3%. Over the past six months, shares of the company have gained 47.1%.
Navistar has an expected long-term growth rate of 5%. Shares of the company have increased 9.5% over the past six months.
Cummins has an expected long-term growth rate of 11.6%. Shares of the company have increased 13.7% over the past three months.
Best Electric Car Stock? You'll Never Guess It.
Zacks Research has released a report that may shock many investors. One stock stands out as the best way to invest in the surge to electric cars. And it's not the one you may think!
Much like petroleum 150 years ago, lithium battery power is set to shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge. With battery prices plummeting and charging stations set to multiply, revenues that were already at $31 billion in 2016 are expected to blast to over $67 billion by the end of 2022.
Image: Bigstock
Toyota Cautions About Midlands Hub Closure With No-Deal Brexit
Toyota Motor Corporation (TM - Free Report) expects closing of production at its U.K. factory if Britain exits without any deal from the European Union (EU), per Bloomberg. Once closed, the company is uncertain of the plant’s reopening, which may take months. Incapability to ship parts required for car production from Europe has impelled Toyota to opt for this plan.
In 2017, the company’s factory, based in the Midlands, manufactured 150,000 Auris and Avensis cars, with components shipped from the EU. Toyota follows just-in delivery system for parts, which arrive at the site minutes or hours before vehicle assembling. Of the total vehicles produced, approximately 90% were shipped to the countries in the EU. Per the company’s website, the hub currently employs 2,500 people.
Except for Toyota, many automakers raised concerns on the uncertainty of cross-border tariffs if Britain exits the EU without a deal. Companies have warned about manufacturing disruptions due to tariffs and high chances of free trade loss.
Toyota Motor Corporation Price and Consensus
Toyota Motor Corporation Price and Consensus | Toyota Motor Corporation Quote
Similar to Toyota, BMW AG announced its decision to shut down its Mini plant in England for a month after Brexit on Mar 29. Another major Japanese automaker, Honda Motor Co., Ltd. announced that a no-deal exit would be very expensive for the company.
Price Performance
In the past six months, Toyota’s stock has lost 1.6%, outperforming 8.3% decrease recorded by the industry it belongs to.
Zacks Rank & Key Picks
Toyota currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Advance Auto Parts, Inc. (AAP - Free Report) , Navistar International Corporation and Cummins Inc. (CMI - Free Report) . Advance Auto Parts sports Zacks Rank #1 (Strong Buy) while Navistar and Cummins carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Advance Auto Parts has an expected long-term growth rate of 12.3%. Over the past six months, shares of the company have gained 47.1%.
Navistar has an expected long-term growth rate of 5%. Shares of the company have increased 9.5% over the past six months.
Cummins has an expected long-term growth rate of 11.6%. Shares of the company have increased 13.7% over the past three months.
Best Electric Car Stock? You'll Never Guess It.
Zacks Research has released a report that may shock many investors. One stock stands out as the best way to invest in the surge to electric cars. And it's not the one you may think!
Much like petroleum 150 years ago, lithium battery power is set to shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge. With battery prices plummeting and charging stations set to multiply, revenues that were already at $31 billion in 2016 are expected to blast to over $67 billion by the end of 2022.
See Zacks Best EV Stock Free >>