Toyota will end its ban on expansion after announcing that it will be building new production facilities in Mexico and China
The automotive giant has refused to make any expansion plans following a spate of recalls in recent years, the latest of which was in October last year when 1.75 million vehicles were recalled, stating that construction of new plants had been halted “in order to improve capacity utilization of existing plants and plan for reduced model change-over and new plant construction investment.”
The new plant in Guanajuato, Mexico, reported to be costing the world’s largest automotive manufacture about £1bn, will feature “new work processes, including Toyota New Global Architecture (TNGA) production engineering innovations, and will be a model for global manufacturing,” the company said.
Toyota said it will employ 2,000 workers with production of the Corolla model set to begin in 2019.
Meanwhile in China, Toyota will expand its existing production line at its southern Chinese facility. It also plans to build a new facility in China by 2017.
Akio Toyoda, president of Toyota Motor Corporation commented: “This investment represents our long-held principles of continuous improvement and challenging ourselves to always do better. An increase in production does not mean an undisciplined pursuit of more.
“Toyota’s expansion must be driven by providing ever-better-cars and our talented people. These investments will be an important test of Toyota’s resolve and a measure of tangible improvement.”
Despite the company’s recall woes, it posted a record operating profit last fiscal year of 2.7 trillion yen.