Following the numerous reports on the matter, Toyota Motor Corp, the world’s largest automaker, has recently announced it would construct new assembly facilities in both Mexico and China to tap growth in the regions.
The carmaker has long been rumored to reinitiate its expansion drive, ending a self-imposed investment freeze that was needed, according to President Akio Toyoda, to focus on quality and other issues. The move to build new factories will also add pressure on its closely following rivals, mainly Germany’s Volkswagen AG and America’s General Motors. The largest carmaker by sales on the planet announced it would break ground on a new factory – worth one billion dollars – in the central Mexican state of Guanajuato, with a set annual production capacity of 200,000 autos. That would lift its total North American production capacity in a bid to tap the rapid recovery of the US auto market, while also profiting from the lower labor costs associated with Mexican auto production. The new plant, Toyota’s first for passenger cars in the country, would create around 2,000 new jobs. The announcement also comes amid a massive auto investment surge in Mexico, with Mexican President Enrique Pena Nieto’s administration seeing since taking office back in December 2012, auto investments worth more than $20 billion dollars. The new factory is also the first to be constructed under the Toyota New Global Architecture plan, which puts the Guanajuato plant around 40 percent less costly than comparable investments in 2008.
As far as China is concerned, the Japanese automaker announced it would move to invest around 52.5 billion yen ($440 million) to build a new facility and also introduce a third line at the Guangzhou plant, jointly owned with Guangzhou Automobile Group Co Ltd. The changes would be complete by 2017, with total production capacity lifted to 100,000 units annually.