Toyota president wants a review of possible expansion in Mexico

Article by Christian A., on September 17, 2014

The president of Toyota Motor Corp., Akio Toyoda, wants the team tasked to search for a location for building a new compact car assembly site in Mexico to re-review the move by yearend, four executives privy with the matter told Reuters. Toyota had targeted to start production of Corolla in Mexico in a few years.

The executives remarked that while momentum had been building for a decision this summer on the expansion, but the carmaker’s top honcho wants planners to reconsider the move. "There’s absolutely no unused capacity lying around anywhere in North America?”

Toyoda was quoted by one of the executives as asking. The executive said Toyoda noted that adding capacity to trigger growth is what had placed Toyota into trouble before. Two Toyota executives told Reuters that it is high likely that a decision would not be made this year.

One of them remarked that Toyota might go ahead with the site, but would scale its capacity or delay the start of construction. While it does not have an assembly site for building passenger cars in Mexico, Toyota already operates pick-up truck plant in Baja California that could build 63,000 Tacoma vehicles annually.

That site also has no capability to produce passenger cars. A spokesman for Toyota said that the carmaker has yet to make any decision on a new plant in Mexico.

Toyoda had blamed the carmaker’s first operating loss in 2009 as well as its massive global recall crisis in 2009-2010 on his predecessors “blind pursuit” of volume and high margins. He then re-shifted Toyota focus on product and quality, and has barred the carmaker to add new capacity through 2016. [source: Reuters.com]

Topics: toyota, mexico, plant

If you liked the article, share on:

Comments

Recommended

In 2014, Jaguar Land Rover’s Special Vehicle Operations revealed the F-Type Project 7. At that time, it was said to be the fastest accelerating road car carrying a 5.0-liter Supercharged...
by - May 29, 2017
There is an ongoing rumor going around the automotive community, and it’s aimed at BMW. The rumor? The German marque has reportedly axed the i5 Electric vehicle concept. These supposed...
by - May 29, 2017
Volkswagen's yearly Worthersee affair that happens in Austria is considered a hotbed for all types of cars from the German company's long and renowned history. Most of the gathering features...
by - May 29, 2017
Behold, the Rolls-Royce Sweptail! The Sweptail is probably the biggest two-seater car that has ever been built. It may look odd at first glance, and you may not be fond...
by - May 29, 2017
BMW just keeps on getting bigger and bigger, in terms of their lineup I mean. Just after unveiling the 8 Series Concept, they are now teasing us with an M8...
by - May 29, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries