Toyota Motor Corp. (NYSE:TM, TYO: 7203.T), the world's biggest auto maker, is planning to build a new plant in Japan. It would be Toyota’s first new domestic plant since the early 1990’s.
Japan’s new plant estimates costs up to 80 billion yen ($695 million USD), and have an annual production capacity of 100,000 vehicles in 2010.
Last year Toyota reported to have sold a record of 8.8 million vehicles, surpassing General Motors Corp. and there title of being the world’s largest auto maker for the past 75 years.
The Japanese giant is tremendously increasing its share of sales in North America, Europe and of course Japan. With Japan’s fuel-efficient models such as the Prius hybrid and the RAV4 SUV, sales are also expanding in the Chinese and Russian markets as well.
This year’s sales expectations are 9.3 million. Toyota plans to reach the 10 million mark in 2009.
In addition to increasing sales and production capacity, plans for the new plant is to simply replace an older factory that would soon close, as well as idle assembly lines at other existing plants so that they could be upgraded.
The new Toyota plant is more than likely to be located in northern Japan, amongst others accompanying plants. So far Denso Corp., Toyota’s main auto parts maker, has plans to build a new plant as well as Isuzu Motors Ltd. will be constructing a diesel engine plant on the northern island of Hokkaido.
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