A recent report by Reuters says Toyota is warning that deepening uncertainties over the direction and timetable of Brexit negotiations may force the company to shift some UK production elsewhere (www.newsroom.toyota.co.jp).

Speaking at the Frankfurt car show, Toyota executive vice president Didier Leroy told Reuters: “A few months ago the UK government was saying, ‘We are sure we will be able to negotiate ‘a deal’ without any trade tax’.

"They are not saying that any more. It is clear that if we have to wait two to three more years to have a clarity on this topic, we will have a big question-mark about our future investment in the UK.”

Carlos Tavares, chairman of the managing board of PSA Peugeot Citroen, reflected a similar sentiment, saying Brexit uncertainties were complicating integration with Opel and its British Vauxhall plants, acquired by the Peugeot maker from General Motors.

“Until we have more visibility on the trade dimension it’s very hard to define a strategy.” Jaguar Land Rover — the UK’s largest car maker — also warned that Brexit was already deterring EU workers and suppliers.

In March, and after receiving written assurances ‘from London’, Toyota announced plans to begin a £240 million upgrade of its Burnaston plant in preparation for future models.

However, Mr Leroy has now said the company could not wait indefinitely before deciding whether to build a new model at the site after production of the ageing Avensis model ends (Burnaston also builds the smaller Auris).

“We cannot take this kind of decision before we have clarity on the future trade relationship.”

He has not confirmed how much of the upgrade funds had already been spent, but did say that considerably larger sums would be needed to launch production of any new vehicles.

“Without further investment, Burnaston’s output will probably start to decline before we will be able to take a decision. The longer we have to wait, the more potential there is to move to another factory.

“We will not postpone a new product for three more years just because the negotiation is going to take three more years. There’s a strong need for us to have clarity as quickly as possible.”