To reduce output cost and to make even the smaller assembling units profitable, Toyota Motor Corp. is planning to upgrade engine assembly lines around the world, according to a report from the Nikkei business daily.
For its current assembly lines, Toyota has spent about 20-30 billion yen ($240 million to $369 million).
These assembly lines have a production capacity of at least 200,000 units to date. The Nikkei said that these new assembly lines (with a production capacity of 100,000 units) may have apparently come up at an investment of 10-15 billion yen.
By the end of 2012, Toyota is hoping to double its hybrid offerings by launching 11 models in Japan. Nikkei reported further that some of the assembly lines at the Shimoyama plant will be upgraded and brought onstream.
The report stated that in China, the major issue in India and Brazil’s conventional assembly lines is that massive investments are needed to address the increase in fixed costs in order to raise production capacity.
Toyota aims to take control of depreciation cost increases by installing new engine assembly lines gradually. [via autonews - sub. required]