Japan’s Toyota Motor Corp, the world’s largest automaker, looks set on completing its three-year production expansion hiatus that was brought by a renewed focus on safety and quality after the 2010 unintended acceleration issues.
The company is now ending the three-year freeze on building new assembly facilities and has now plans to build two new plants in China and the third in Mexico – to cater for the first and second largest auto markets – China and the United States. The news comes courtesy of a report from Reuters, with the news service citing four managers that have knowledge of the carmaker’s growth strategy. According to the executives, the Japanese company has already finished initial feasibility studies in both countries and now the “teams are ready to execute,” as one of them said. Jim Lentz, Toyota’s North American operation chief did acknowledge that following “a three-year hold” on investing in new plats, the company is ready to end the freeze. “It’s a different way than in the past. It’s not going to be growth for growth’s sake,” he commented in an interview during the Detroit motor show.
The sources, with knowledge on the matter, told Reuters that Toyota’s Chinese unit is now focusing on the plans to construct the two new assembly facilities – one in the northeastern city of Changchun and the other in the southern city of Guangzhou, where Toyota already has installed car production facilities. As for Mexico, the company is evaluating the central state of Guanajuato for a passenger car factory.