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

The primary suggestion of a 4x4 ute from French company Peugeot was first revealed in 2016. Fifteen months later, the production version is launched. Now, Peugeot is not shying away...
by - June 24, 2017
The new Jaguar E-Pace crossover will soon hold its official launch on July 13 and is expected to arrive at the showrooms by early next year. It couldn’t have come...
by - June 24, 2017
As prices of the original Shelby Cobra have skyrocketed into astronomical proportions, there are firms like Superformance that serve replicas to consumers who demand the same levels of performance at...
by - June 24, 2017
New and improved 2018 Subaru Legacy comes packed with a number of upgraded features from the get go - from the exterior to the interior. And the company has finally...
by - June 23, 2017
In an interview involving Lamborghini CEO Stefano Domenicali and Automotive News, the topic about the Urus was thoroughly discussed. This super SUV is scheduled to make its debut later this...
by - June 23, 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