LONDON -- Toyota will supply Suzuki in Europe with a station wagon that will be built at Toyota's UK factory and an SUV imported from Japan.
Toyota build a Suzuki version of its Corolla hybrid wagon at its factory in Burnaston, England, starting in 2020. Toyota's engine factory in Deeside, Wales, will produce engines for the wagon.
The additional work gives the factories an element of security as Toyota and other automakers reconsider investments in the UK due to the possibility of tariffs between Britain and the EU following Brexit.
The Suzuki model will be similar enough to the Toyota Corolla wagon that no new investment or jobs will be added, a Toyota spokesman told Automotive News Europe.
"The volumes will be confirmed nearer the time and are expected to be within the existing production capacity of the plants," Toyota said, adding that it still hoped the UK and EU will agree a tariff-free Brexit.
"We have consistently said that in order to ensure the competitiveness of our UK operations, we need tariff-free and smooth access to the EU and common standards. A no-deal Brexit would make it very difficult for our operations to be competitive," Toyota said.
Toyota employs more than 3,200 people at the two plants. The company recently invested 240 million pounds to upgrade the Burnaston plant to produce the new Corolla hatchback and wagon.
Suzuki will also sell a version of Toyota’s RAV4 hybrid in Europe sourced from Japan.
The two models will help Suzuki to lower its CO2 emissions in Europe to comply with tougher reduction targets coming into force starting in 2020.
Suzuki lacks electrified models of its own and has recently had to restrict supply of its popular Jimny small SUV because it feared the gasoline car would increase its CO2 emissions average.
Currently Suzuki has the sixth lowest average CO2 emissions among automakers selling in Europe at 114.2 grams per km in 2018, according to figures released by JATO Dynamics in March.
Toyota engine plant in Poland will build Suzuki gasoline engines. The engines have been created specifically for smaller cars and were designed with Toyota input.
Toyota will also supply hybrid technology to Suzuki for vehicles sold in India.
The two automakers will co-develop a compact minivan for India to be built by Toyota and supplied to Suzuki.
Toyota will also build a Suzuki-developed compact SUV called the Vitara Brezza from 2022 at Toyota’s Kirloskar plant in India.
Suzuki will supply Indian-built vehicles for Toyota to sell in Africa.
The moves deepen the tie-up announced by Toyota and Suzuki announced in 2017.