Volkswagen talks to Toyota on building deal
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• Volkswagen has revealed that negotiations with the Toyota Motor Co could lead to the Japanese manufacturer building light vans and trucks at VW's underused Hanover factory in West Germany. Volkswagen UK says "there is no firm commitment yet" between the two companies, and although the Hanover commercial vehicle plant is still working below capacity, production of Transporter and LT vans in the first quarter of 1987 is around 15% up on the same period for last year.
Volkswagen commercials market share has been hit by Japanese imports into Europe, although Japanese imports to the UK are limited by a voluntary quota system. This attack on market share, as well as the Mercedes-Benz/Mitsubishi tie-up in Spain, has probably convinced the German company to enter into talks with Toyota.
The agreement would allow Toyota to build vehicles for the European market without aggravating the existing trade tensions between Europe and Japan. The Japanese company has issued a statement confirming that "Toyota is continually involved with various research studies concerning Europe," although, "at this time nothing specific has been decided upon."