According to a report coming from the Globe and Mail, Japan’s Toyota Motor Corp, the largest carmaker in the world, is going to relegate Corolla production from Canada to Mexico to lower costs.
Recent reports have put the No. 1 global automaker ending a self-imposed three year production expansion freeze with a billion dollar investment in a new factory – set to be built in Mexico. In recent years the country has become Latin America’s biggest auto producer thanks to its lower labor costs, myriad of free trading agreements with regions across the world and strategic geographic positioning next to the US, the world’s second largest auto market. The Globe and Mail built their report on the previous ones, adding details that production of the Corolla model would be relegated to Mexico from Canada to save money, citing people that have knowledge of the matter. According to the sources, who asked not to be named because the matter is not public yet, Canada’s Cambridge and Woodstock assembly facilities are incurring higher costs for Toyota even when compared to the automaker’s factories in the United States – so the sources said the company wants to free up capacity to build more expensive models in the country.
Reuters reported that industry and company sources said Toyota will spearhead a new expansion period with a one billion dollar expense in Mexico – constructing a new car plant there that should start production sometimes in the summer of 2019, ending the internal three-year production cap. Toyota should also reveal this week its plans to also build an assembly facility in China, the world’s largest auto market.