Toyota reorganizing its manufacturing operations to cut costs

Article by Christian A., 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

Recommended

Hyundai Motor Group – including both Hyundai Motor and Kia Motors – has disclosed a wide-ranging plan to introduce 31 environment-friendly models in a new development roadmap that aims to...
by - August 22, 2017
Over a decade ago, Pagani took the Zonda to the Geneva Motor Show. The Zonda hypercar was then set to retire in 2013 together with the track-focused Revolucion. But here...
by - August 22, 2017
The newest Porsche Cayenne is scheduled be unwrapped by the end of the month after completing endurance tests worth 2.7 million miles. Since we are just a few weeks away...
by - August 22, 2017
This is the time of the year when automakers give us teasers and previews of their upcoming models. Now, it seems like BMW is ready to unveil the M5 (F90)...
by - August 22, 2017
It is quite common to revive classic cars if you have a lot of extra money. Models like the Jaguar XKSS and Aston Martin’s DB4 GT have been upgraded to...
by - August 21, 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