The Japanese car leader Toyota Motor Corp. is ready to start building its auto-assembly plants again after a gap of three-years. This will have costing of about $1.25 billion for its upcoming factories in Mexico and China, people as per the market sources.
Both the new plants are expected to start functioning around 2018 or 2019. With the help of these plants the company will be able to expand its annual production capacity by a number of vehicles, according to the market experts. However, there is no official declaration yet made by the company. Within a few days the official statement is expected from the company.
The globally renowned best-selling car maker is finally moving into expansion mode after a long period of caution while President Akio Toyoda asked for an overhaul of production lines.
Over the last few years, the Japanese car maker Toyota has been planning new manufacturing equipment and engineering technology which can be utilized to shrink the size of upcoming plants and make the current plants more efficient.
As per the history the Toyota had aggressively built some new plants in the beginning of 2000 but the company had to move from the plans after the global financial crisis. Thereafter, the company hasn’t made any new investment in new plants since 2012, before it made an official declaration about a new plant in Thailand.
According to Mr. Mitsuru Kawai, who is a senior managing officer at Toyota told in Nagoya on Friday that they had truly suffered. They had expanded production at a full speed, but because of that, they did not find time for workers to think.
When Toyota had stopped the work of plant its close rivals such as Volkswagen focused on expansion of its production capacity so that it can meet growing demand. The Mexico has recently developed as an auto manufacturing hub, which can export cars to the U.S. The China is known as the world’s biggest car market.
The company has been working on production lines which can be quickly adjusted in a few hours or less to respond to variations in demand for some new models. The company has also developed more-powerful laser welding machines and press machines that can help to short the assembly lines. The most modern and advanced technology is expected to be initiated at the new factories as well as some existing factories.
At the famous Myochi plant which is situated in central Japan, where Toyota produces power train-related parts and other components. There is a section which is shrunk to 12 meters from 27 meters, Mr. Kawai told.
As per the company, it is planning to produce 10.21 million vehicles in 2015 and sell 10.15 million vehicles, figures also include group companies Daihatsu Motor Co. and Hino Motors Ltd. The company has no doubt all the capacities to go for rapid expansion, however, as per the market experts the Volkswagen is planning to overtake the company very soon.
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