Toyota nears decision on 2nd Mexico plant

Toyota nears decision on 2nd Mexico plant

Stephen Downer | Automotive News / March 8, 2007 - 3:49 pm

MEXICO CITY -- Toyota is within a year of deciding whether to build a second
assembly plant in Mexico, says a high-level source at Toyota Motors Sales de
Mexico, the automaker's unit here.

"A decision will be made within 12 months," the source told Automotive News
in an interview. If approved, the plant would be running by 2012, he said.

Toyota's plans for the plant are no secret, but the time frame and the
regions being considered are emerging.

The source said Toyota is considering building the plant on undeveloped land
in either central or northern Mexico. "One thing that is sure," he said, "is
that it will not be built in Tijuana," where Toyota Motor Manufacturing de
Baja California opened in 2004.

The Tijuana operation assembles Tacoma pickups for the United States and
Mexico, as well as Tacoma truck beds. Truck assembly capacity, which started
with 30,000 vehicles a year, will rise to 50,000 this year.

Toyota probably would assemble the Yaris car at the new plant. The version
sold in Mexico comes from Japan. The Yaris also is assembled in France.

"The Yaris is one of the cars we would like to produce in Mexico," the
source said.

Toyota's new-car sales in Mexico rose to 60,088 in 2006 from 35,318 in 2005,
a 70 percent increase. Toyota launched its sales operation in Mexico in
2002, when it reported 3,826 vehicles sold.

This month, Toyota will introduce the Tundra pickup, assembled in San
Antonio, to Mexico. Toyota says 40 percent of the Tundra's components are
made in Mexico.

All Mexican auto assembly plants are in the central, western or northern
parts of the country.

Aguascalientes -- in central Mexico 310 miles northwest of Mexico City,
Mexico's largest market -- would be a strong candidate for Toyota's second
plant.

Nissan Mexicana has a large assembly plant in the city. Toyota could supply
all major Mexican markets from that location.


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