Toyota scraps plans for Thailand & Russia factories
January 6, 2009 by Alborz Fallah
Last year was a tough year for all manufacturers, even the world’s biggest (and arguably the most successful) manufacturer, Toyota, reported its first-ever annual operating loss. The Japanese giant has today announced that it will halt all plans to build new factories in Thailand and Russia.
Toyota notes the current decline and slowing demand for cars worldwide as the cause. The company is also faced with a crippling rise in the yen, making exports less profitable.
Much like Suzuki, Toyota will also plan to cut capital expenditure as well as car production to cope with falling global auto demand. The freeze in plans for the Russian and Thai factories is only the beginning of the company’s restructuring process.
The Thailand engine plant was meant to have an annual production capacity of around 150,000 diesel engines a year, this would have allowed Toyota to increase its diesel engine output capacity to 350,000 units by 2010 and create about 700 jobs.
Toyota already has an existing plant in Russia with the capacity to output around 50,000 cars a year, however as the plant is not running at full capacity, the big T has no reason to go ahead with plans to build a secondary factory.
News of the company’s troubles makes us wonder how much longer Toyota will stay in Formula 1 and other motor sports.
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JUST BUY A CAR MADE IN JAPAN> LIKE MITSUBISHI AND MAZDA
LIKE A NEW PLASMA OR LCD TV. WITH JAPANESE QUALITY BUILD
YOU CANT GO WRONG.
Take a good look at how many taiwan/chinese built products last.
I THINK ITS A SAD THING TOYOTA IS BUILDING CARS OUTSIDE JAPAN.
Karen, isn’t it funny how Toyota’s claimed “unbreakable” vehicle, the Hilux is built in Thailand. Seems that they are no different to the rest.
High the mighty have fallen……
Karen – One of if not the Best looking and most Powerful Toyotas is actually built in the USA; the TRD Tundra Pick Up… maybe if we got it here in Oz instead of the tarted up Hilux they might have actually sold a few more cars and still be in business – hey even I’d consider buying one
BTW: Things are so bad in Japan ATM that Honda is considering the unhinkable and that is: pulling out of Japan all together relocating their HQ to Europe..
Just because a particular car isn’t built in the country where the car manufacturer comes from doesn’t necessarily mean the build quality will suffer..
For example there are a number of BMWs that are built in Seth Efrica but the build quality the fit and finish the features and specifications etcs are the same as the cars that are built in Germany.. because B
Thank gawd for that.
Do we really need more Camrys?
If they made them cheap enough u could disgard them after 40,000klms in a similar fashion to disposable razor blades.
Hey Karen know someone who bought a big screen Sony LCD made in japan middle last year. Screen panel went on it in a month was replaced after much debate then the power supply failed in the replacement set.
Eventually got a refund of retailer and bought equivalent size in an LG from another retailer with added bonus of inbuilt hard drive and not a problem. Think LG set in made in Korea.
LG customer service also superior to Sony as friend dealt with both for prob with Sony set and an enquiry about operating the hard drive in the LG.
Friend bought particular Sony model because it was made in Japan!
Most of Sony /Panasonic etc aren’t anymore.