TOKYO, Oct 25 — Toyota Motor Corp has halved its production target for a factory it’s building in Mexico and scaled back planned investment by 30 per cent amid pressure from US President Donald Trump for carmakers to make more of their vehicles in the US.
Japan’s biggest automaker will reduce investment in the Guanajuato plant to US$700 million (RM2.9 billion) from the originally announced US$1 billion, while cutting planned capacity to 100,000 units per year from 200,000 units, Toyota spokesperson Akiko Kita said in an email.
The shift doesn’t change Toyota’s stance on long-term commitment in Mexico, but the change in investment was necessary to guarantee long-term competitive production structure and operations, Kita said.
Automakers have has come under fire from Trump, who in January threatened Toyota with a border tax for planning to build a factory in Mexico.
The company has a plant in Tijuana, a city in Mexico’s Baja California state that borders the US, building Tacoma pickups.
Toyota and Mazda Motor Corp this summer agreed to jointly build a US$1.6 billion US factory, the auto industry’s first new assembly plant to be announced under Trump.
The two plan to start producing Corolla compact cars and Mazda crossovers at a shared factory in 2021, creating as many as 4,000 jobs.
The Nikkei newspaper reported Toyota’s plans for the Guanajuato plant earlier this morning. — Bloomberg