Arab Today, arab today toyota ends plant freeze with 10bn mexico factory
Last Updated : GMT 06:09:23
Arab Today, arab today
Arab Today, arab today

Toyota ends plant freeze with $1.0bn Mexico factory

Arab Today, arab today

Arab Today, arab today Toyota ends plant freeze with $1.0bn Mexico factory

Toyota, the world's biggest automaker
Tokyo - AFP

The world's biggest automaker Toyota ended its freeze on building new factories Wednesday, unveiling plans for a $1.0 billion plant in rising industry power Mexico and another production line in China.

The Japanese giant said it would build a factory in the central Mexican state of Guanajuato to start production of the Corolla sedan in 2019, creating about 2,000 jobs.

The company also said it was adding another production line to an existing plant in southern China to start from 2017.

Together, the investments would raise its global capacity by 300,000 units annually -- including 200,000 at the Mexican plant -- at a combined cost of about $1.4 billion, Toyota said.

Toyota will shift Corolla production away from a Canadian plant to the new facility in Mexico, a favorite destination for automakers thanks to its cheap labor and proximity to the huge US market.

Mexico surpassed Brazil to become the world's seventh biggest auto producer last year, with companies such as Japan's Honda and US firm General Motors building up their presence in the country.

Mexican President Enrique Pena Nieto said production rose 10 percent in the first quarter compared to last year.

"Toyota's decision to invest in Mexico is not a coincidence. This projects Mexico as a reliable investment destination," Pena Nieto said from his official residence in Mexico City, accompanied by Toyota executives.

- No unrestrained production -

Toyota said it would announce later which model would roll off the new Chinese production line.

Earlier reports said the automaker would probably produce fuel-efficient passenger vehicles under a local brand through a joint venture with a Chinese firm.

The vehicles would meet stricter environmental regulations as China, the world's biggest auto market, grapples with a serious air pollution problem.

The Japanese carmaker began operating a new Thai plant in 2013, but since then it has halted investment as the global car market has struggled with oversupply and weak demand.

Despite Wednesday's announcement, Toyota chief Akio Toyoda said the firm would not embark on an unrestrained expansion.

"An increase in production does not mean an undisciplined pursuit of more," he said in a statement.

Last month, Toyoda announced plans to overhaul the firm's production methods, vowing to slash development costs and describing the shake-up as crucial to navigating "sudden and drastic changes" in the auto sector.

While the car giant is on track for a record $18 billion fiscal year profit, largely due to a weak yen and strong North American sales, Toyoda has said his family firm must go further to protect its bottom line in a fast-changing market.

- New approach -

The company said it would raise the fuel efficiency of its powertrains -- the engine and transmission -- and build more new models on common platforms, as its rivals also increase the number of shared parts on different vehicle models.

Toyota said the move, aimed at cutting development costs by 20 percent, would start with mid-sized, front-wheel-drive vehicles this year. It wants half of vehicles it sells globally by 2020 to fall under the new platform strategy.

The new investments would highlight that strategic move, the firm said.

"Building this plant (in Mexico) will be one of Toyota's efforts to realign its North American manufacturing operations and begin a new approach to plant building," it added.

Toyota kept its title as the world's biggest automaker last year as it announced record sales of 10.23 million vehicles, outpacing GM and Volkswagen.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today toyota ends plant freeze with 10bn mexico factory Arab Today, arab today toyota ends plant freeze with 10bn mexico factory

 



Arab Today, arab today
Arab Today, arab today Fadi Kataya explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Messi visit will contribute in tourism

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Mental conflict endures

GMT 07:36 2017 Friday ,24 February

Mental conflict endures

GMT 10:47 2017 Thursday ,23 February

Saudi Aramco may offer discounted shares to citizens

GMT 06:25 2017 Thursday ,23 February

Bupa Arabia sponsors SMEA forum

GMT 06:11 2017 Thursday ,23 February

Football: Turkish company wins Qatar World Cup contract

GMT 05:46 2017 Thursday ,23 February

SABIC net profits fall in 2016

GMT 21:01 2017 Wednesday ,22 February

Saudi Aramco mulls offering citizens discounted shares

GMT 16:50 2017 Wednesday ,22 February

Yahoo salvages Verizon deal
View News in Arabic - Business: أخبار الشركات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Wafaa Amer is happy for Sherihan’s return

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday