Report – Toyota rethinking Mexico factory plans image

Although we just recently told you that Toyota was searching for a new site to build a compact car assembly facility in the Central American country, a new report already claims the plan is now being reconsidered.

No less than four Toyota group executives, talking to Reuters under condition of anonymity, said that the largest automaker in the world was mulling an expansion plan to broaden its manufacturing base to produce the mass market Corolla in Mexico in the near future. But, following company President Akio Toyoda’s request, the strategy is now reviewed and the growth plans for the moment paused.

“There’s absolutely no unused capacity lying around anywhere in North America? Installing production capacity to try to trigger growth is the old way that got us in trouble before,” were the questions of Toyoda, according to one of the sources.

“We are always evaluating our production capacity in Mexico, and in North America generally, to keep it in line with local market demand, but no such decision has been made at this time,” comments the rumors a Toyota spokesperson.

According to the people familiar with the plans, the decision to expand was anyways not expected until the beginning of 2015, so the review will not delay the proceedings too much. Toyota already has a motor production facility in Mexico, a pick-up truck factory in the northwestern Mexican state of Baja California that can churn out 63,000 Tacomas annually.

Via Reuters