Toyota to suspend new plants for 3 years—reports

A+
A
A-

Visitors walk around a Toyota showroom in Tokyo on Dec. 27, 2012. Toyota Motor has decided to halt the construction of new factories for the next three years in a shift from its previous policy of building new plants almost annually, reports said Sunday, Jan. 6, 2013. AP PHOTO/SHIZUO KAMBAYASHI

TOKYO—Japan’s Toyota Motor has decided to halt the construction of new factories for the next three years in a shift from its previous policy of building new plants almost annually, reports said Sunday.

 

The company, which hopes to regain top spot in the global auto market, will concentrate its capital investment on existing factories, the Nikkei business daily said.

 

The new policy will basically shelve through the end of the 2015 fiscal year all plans for building new factories other than those already announced, the paper said.

 

The company will officially announce the decision in a new management plan to be released in coming months, Jiji Press said, adding that Toyota wants to increase efficiency and cut costs.

 

Japan’s largest automaker now has around 50 overseas plants and just under 30 domestic ones.

 

Toyota said in late December that it sold an estimated 9.7 million vehicles in 2012, which could put it ahead of General Motors and Volkswagen as the world’s biggest automaker.

 

The company expects to sell about 9.91 million vehicles this year.

Disclaimer: The comments uploaded on this site do not necessarily represent or reflect the views of management and owner of INQUIRER.net. We reserve the right to exclude comments that we deem to be inconsistent with our editorial standards.

  • dprotector

    Toyota has been in the Philippines for a long time. They have assembly plant in our country but most of the parts I think are made in Japan and now Thailand. That is why the government cannot rely on this company to put up the part making plants that produce jobs. The government could instead put up a new automotive industry that does not rely on the decision in Japan.

To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.

Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:

c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City,Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94