Tuesday, October 23, 2007

New Toyota Plant in Northern Japan?

Toyota is from Japan and this where Toyota flourished. However, Japan is an expensive country for its highly skilled and expensive workforce. So, for nearly two decades Toyota opened a number of manufacturing plants in other parts of the world but not in Japan. Now, Toyota is planning to open a new manufacturing plant in northern part of Japan.

MarketWatch reported:

Central Motor Co., which is held 48% by Toyota Motor Corp. (7203.TO), said that it will start talks with local government to establish the plant, the first new domestic group plant since Kanto Auto Works Ltd. (7223.TO) built facilities in Iwate Prefecture, northern Japan in 1993.
As part of the move, Central Motor will abolish its headquarters and facilities at its existing plant in Sagamihara, near Tokyo and move them to the new location. The existing plant doesn't have room to boost production.

This is a good strategy from Toyota. Japan is still a very big market of car in the world. Japanese people re rigch and they can afford to buy expensive models. So, I think that Toyota will have better position in Japanese car market in future.