Toyota reorganizing its manufacturing operations to cut costs

Article by Christian Andrei, on February 18, 2011

As part of efforts to make domestic output more competitive, Toyota Motor Corp. has reorganized its manufacturing operations to reduce costs. It will also boost production of the Corolla car at a new plant in northern Japan.

Yasuyoshi Shirai, executive vice president of Central Motor Co., said that initially, Yaris compacts are being produced by the plant in Miyagi prefecture but that Corolla production will start in April.

said that the factory will eventually build cars for sale in Japan. During the inauguration of the new factory, Cho said that exporting from Japan “doesn't make sense financially” due to the yen’s strength.

However, Cho believes that Toyota shouldn’t be hastily reacting to trends and that manufacturing in Japan should be protected. Toyota is making the northern Tohoku region (including Miyagi) a small-car hub as its Japanese plants face dropping domestic demand and a strong yen that's taking away the competitiveness of exports.

Satoru Takada, an analyst at TIW Inc. in Tokyo, said that Tohoku may seem more attractive due to lower labor costs relative to Aichi prefecture, Toyota's primary domestic production center. [via autonews - sub. required]

Topics: toyota

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Volkswagen Group’s dieselgate saga continues, but it appears the German company would be able to get out of trouble, but it would not be unscathed. This development comes as Volkswagen...
by - January 22, 2017
When a car has been in the market for nearly six years, it loses some of its luster and its customers tend to go for the all-new model with a...
by - January 22, 2017
Remember Zenos Cars, a British carmaker that specializes in designing and building lightweight and high-performance sports cars? If you are wondering how the company is faring with their E10 lightweight...
by - January 21, 2017
Mercedes-Benz has revealed that in 2017, its series 124 coupé will be celebrating its 30th anniversary. While this itself is a significant event, it will also mean that this model...
by - January 21, 2017
BMW’s 550i xDrive has long been considered as one of the most successful business sedans in the world. For the brand, this may not be enough as it has officially...
by - January 20, 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