MANILA, Philippines--Toyota Motor Corp. is ramping up its Philippine operations to cement the country's role as its global manufacturing hub for manual transmission systems with the inauguration last Friday of a P5.6-billion expanded facility in Sta. Rosa, Laguna.
The expansion also marked Toyota Autoparts Philippines' starting production of the R-type transmission (RTM) that is used in Toyota's innovative international multipurpose vehicles or IMV series.
TMC chairman Fujio Cho graced the launch of the new facility, which he described as "a crucial component in our global (IMV) product line."
Toyota Autoparts president Yasuro Takeuchi said in an interview that the expanded facility at the Toyota Special Economic Zone featured a new building meant to accommodate planned increases in production and exports.
"We have three other RTM production bases in Japan, Thailand and India," Takeuchi said. "But the direction is toward making three global hubs for automatic and manual transmissions--the United States, Poland and the Philippines."
"Transmission systems that are produced here are competitive in terms of quality and cost compared to those made elsewhere in the region, even in Japan," he added.
The IMV series include the Innova utility vehicle, the Hilux pickup and the Fortuner sports utility vehicle.
Compared to the G-type gear box (GTM) that the company has been producing since 1992, the RTM is meant for vehicles that have bigger engine displacements.
The GTM is used in Hilux and Innova units with 2- and 2.5-liter engines while the RTM is used in all three IMVs with 2.5-, 2.7- and 3-liter engines.
Takeuchi said that for the fiscal year that ends in March 2009, the company planned to produce 300,000 transmission units or two-thirds more than the output in the previous year.
This accounts for the regular GTM output of 180,000 units a year and the initial 120,000 units of RTM that would be produced until March 2009.
Starting in Toyota's fiscal year 2010, RTM output will equal that of its GTM output.
With about 97 percent of production meant for export, Toyota Autoparts intends to ship out 290,000 units in 2009, or an increase of 71 percent.
The RTM is scheduled for shipment to Thailand, Indonesia, Vietnam, Malaysia, Taiwan, South Africa, Venezuela and Argentina.
As for the GTM, this is used in the locally assembled Innova and also exported to Thailand, Indonesia, Vietnam and Malaysia as well as Pakistan and India.
Takeuchi explained that the increasing global demand for IMVs prompted the decision to put up a RTM production line in Sta. Rosa.
RTM production provides 500 new jobs and more business to Toyota's local suppliers, which include Daiwa-Seiko Philippines, Aichi Forging, Technol-Eight, Philippine Hikari Seiko, Tokai-Rika Philippines, Othsuka Philippines and Koyo Philippines.