The Toyota Motor Corp is reportedly looking to expand its manufacturing productions by constructing two new automotive plants in Mexico and China. For the past several years, the car company has focused on developing manufacturing equipment and technological engineering to improve efficiency of existing plants.
However, the demand for production in the U.S. is starting to increase, thus ending a three-year freeze due to economic decline, therefore the company will allegedly invest a total of $1.3 billion after receiving the go-ahead from Toyota President Akio Toyoda. “We are gradually starting to witness the next stage for new plants,” Mr. Toyoda told investors last month. He said the company had to make a “sweeping change” to “make our plants competitive, instead of merely pursuing volume.”
With just over 10 million Toyota units sold in 2014, it is projected that the two new plants will increase Toyota’s production capacity by nearly 300,000 cars. The Mexican plant, most likely to be located in Guanajuato, is projected to produce 200,000 units of the next-generation Corolla, scheduled to arrive in the North American market in 2019. The China plant, to be located in Guangzhou, is estimated to produce 100,000 Yaris subcompacts starting in 2018.
It’s an exciting time with the Toyota plant expansion, so be sure to stay tuned to Hurlbert Toyota for the latest news.