Toyota Motor Corp. said Wednesday that it will increase production in Britain by 30 percent.
The move constitutes an effort by the Japanese automaker to stem losses resulting from the British pound's gains against the euro by maximizing output.
The carmaker said the increase will increase its annual local output to 220,000 units from 170,000 units. The plan will involve shifting the production of the three-door Corolla car from a plant in Japan to Toyota's plant in Derbyshire, it said.
Toyota currently exports the five-door Corolla model made at the plant to continental Europe. The British pound's strength, however, left the plant with losses of 52 million pounds (88.40 billion yen) in 1999.
Toyota's move contrasts with a series of production cuts in Britain by other automakers trying to cope with the effects of the higher pound.
Toyota said, however, that it expects the increase to help offset fixed overhead costs for plant and equipment.