Saturday, May 20, 2006

Toyota setting up another new plant in North America

Written by: S.M.Mehdi Hassan
Toyota is now planning to set up another new plant in Southern American states, including Texas, of North America. Due to excessive demand of its products the company is planning to set up this new automotive plant which is expected to go on operation in 2009. The new plant will have a production capacity of 200,000 units.

At present, USA is Toyota’s biggest market and the demand is growing. Toyota has planned to begin production in its new plant located in Texas and Subaru of Indiana Automotive Incorporation Located in Lafayette, Indiana. The Subaru plant is actually owned by Fuji Heavy Industries Limited. Recently, Toyota acquired 7% equity stake in Fuji.

Last year, Toyota produced 800,000 units and if things go well then with the existing factories and the new ones Toyota would be able to produce two million units annually.

On the other hand, Toyota’s rival Honda is also planning to build a new factory in North America. Now days, Japanese companies are planning to set up new plants in USA in order to avert the complaints. I am quoting from the report published in The Standard
By creating jobs, Toyota appears to be trying to deflect US complaints that Japanese automakers have unfairly benefited from a weak yen.
This is good news for American people because more jobs will be created but bad news for Japanese workers because they will loose their jobs.

Related Articles:
The Standard
Market WatchThe Japan Times