Toyota To Spend $1b on North American Factory

lexus-tahara-plantToyota has announced plans to invest more than $1 billion to build a new manufacturing factory in North America. The plant, which is expected to take several years to construct, will be located in Guanajuato, Central Mexico. The automaker says this is part of a larger objective to realign Toyota’s vision with the North American market.

According to a press release issued by Toyota, the new plant will feature state-of-the-art TNGA innovations to ensure the highest level of quality and productivity possible. In case you were wondering, TNGA allows Toyota to churn out vehicles that have a lower center of gravity, weigh less, feature more compact components, offer greater fuel efficiency, better visibility, high-quality collision control, and deliver greater performance

Furthermore, it will employ an estimated 2,000 workers, boasting an annual production of capacity of 200,000 units. While many automakers have struggled to regain sales following the economic downturn several years ago, Toyota has remained strong, due largely in part to its decisive actions and innovative products.

It’s important to note that Toyota’s upcoming plant will be focused strictly on its Corolla automobile. The company says that when production begins on its new manufacturing plant in 2019, the Toyota Motor Manufacturing Canada Inc. (TMMC) will convert an existing plant in Ontario from producing Corollas to mid-sized and premium automobiles. This is expected to be the first significant investment in Toyota’s Ontario plant since it first opened back in 1997.

Having produced vehicles in this country for more than thirteen years, we know that the strength of the workforce and manufacturing capabilities in advanced technology make Central Mexico the right place for our newest facility,” said Mike Bafan, President, Toyota Motor Manufacturing de Baja California, Inc. (TMMBC) and project leader for the new plant. “Our announcement today further reaffirms our commitment to our Mexican team members, dealers, partners, suppliers and customers, and we look forward to future success together.”

So, when can you expect to see Toyota’s new manufacturing plant up and running? There’s still no official date announced for its completion. With construction expected to begin in 2019, however, it may not be until 2023 or later.

What do you think of Toyota’s decision to construct a one-billion-dollar manufacturing plant in Central Mexico?

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