Toyota to boost Chinese production with third plant in 2012

Production commencement at the 3.8 billion yuan ($602 million) Changchun plant was put on the backburner in 2008 because of the global financial crisis, but Toyota says it will be full steam ahead from the first half of 2012.

The plant will produce Corollas at a rate of 100,000 per year, adding to its current Chinese production capacity of 800,000 units per year.

Like Toyota’s existing Chinese plants, the Changchun facility will be operated in partnership with the FAW Group.

Interestingly, Volkswagen is also running a joint venture with FAW, as the two manufacturers battle for the title of the world’s largest vehicle maker.

Toyota is aiming to sell more than more than 800,000 vehicles in China this year compared with last year’s tally of 709,000.

Toyota Motor China President, Masahiro Kato, last week announced that the brand was considering a new low-cost small car for the Chinese market.

Mr Kato said the entry-level vehicle – which is expected to be developed specifically for the Chinese market – would hopefully be introduced within five years.

Toyota also revealed its intention to create six quality control centres to assist Chinese owners on the back of the manufacturer’s recent global recalls.

(with Reuters)