Toyota Plans to Invest $800M in Argentina Plant image

Toyota announced its plans to increase annual production at its Zarate plant in Argentina to 140,000 vehicles from 92,000 in 2015.

Production capacity at Toyota Argentina is being increased as the automaker expects demand to continue to grow in Latin America. Toyota will also boost exports to around 110,000 units per year. The Japanese company will invest around 17 billion yen to increase capacity and upgrade production facilities.

Toyota Motor Corporation considers Toyota Argentina a supply for Innovative International Multi-purpose Vehicle series which are manufactured to be exported throughout Latin America. Last year TASA exported 63,000 units to Brazil and other countries in the Latin American market, accounting for almost 70% of the plant’s total annual production.

Toyota has increased annual production capacity from 70,000 units at the end of 2007. Toyota Argentina started production at the Zarate plant the Province in 1997 and was founded in 1994. The automaker has 4,300 employees in Argentina.

“This is just one more example of the confidence that Toyota Motor Corp. has in Argentina,” said Steve St. Angelo, chief executive officer for Toyota in Latin America and the Caribbean.

Although inflation in Argentina continues to increase, and the energy supply problems are worsening, auto production in the country has been booming in the past recent years. In 2012 the market produced 764,000 units, compared with 159,000 units in 2002.

Source: marketwatch.com