Although Toyota has previously looked to maximize capacity at its existing North American plants, a report by Bloomberg suggests that the company will depart from this policy and look to establish a manufacturing facility in Mexico, following the lead of Honda, Mazda and Nissan in the Japanese auto industry's drive to localize production.
Currently, Toyota has a small facility in Tijuana that produces the Tacoma pickup from CKD kits, and has signed an agreement with Mazda for the automaker to build a subcompact car that will likely be branded as a Scion. But they are without a full-scale factory of their own, at a time when virtually every other auto maker is expanding into Mexico.
The Mexican expansion is seen as a necessary move for many auto makers, allowing them to expand capacity in the NAFTA zone while taking advantage of far lower labor costs and generous tax incentives. This has led to a boom in auto manufacturing in Mexico, with relatively little investment in traditional locations like the Midwest and Canada.
The post Toyota Next To Join Mexican Assembly Fiesta appeared first on The Truth About Cars.
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