On October 25, Toyota Motor Corporation announced it will scale back its new auto plant in Mexico.
The new plant is currently being constructed in Guanajuato. Initially, the plan was to invest nearly $1.0 billion and for production of 200,000 Corollas from 2019.
According to Toyota’s announcement, it will cut back its investment by 30% to around $700 million and its annual production by half to approximately 100,000 units.
The scale back is essentially due to a change in its production lineup. Now the plan is to assemble Tacoma pickups instead of the Corolla.
Toyota’s new Mexico plant is expected to commence operations in 2019. Toyota stated that this decision was based on its global strategy.
Written by Minoru Moriwaki
(Translated by Masayuki Shikata)