Bidness Etc - Toyota's Mexico Plant To Make Its Way Soon

Toyota to establish an assembly center in Mexico

Toyota Motor is focusing on expansion. Thus, for the same reason is coming up with ways to come up with an assembly plant situated in Mexico. The board of directors at Toyota is coming up with ways to get the Mexico-based center approved so that the work can initiate in May 2015. The company officials who have knowledge of the company’s plan stated to Reuters.

According to sources, this plant will be a massive breakthrough for the company as the company will be able to start the production of the Corolla Sedans by 2009. Many other companies in the automotive business have been making massive investments to kick off their businesses in the right direction. Volkswagen has also worked on a similar project and now Toyota is also in the race where the company will invest more than $1 billion in this venture.

However, the company is going to the strategy of its president, Akio Toyoda who believes that expansion on such a massive scale can cause the quality of the product to suffer. Toyoda believes when the company starts the production on such a mass scale then quality goes down and quantity only remains. In 2009, the company encountered a similar experience when they had to encounter a crisis due to expansion compromising on quality.

Toyoda now changed his approach and started the search for a site in Mexico that could help them increase the production. Moreover, he also encouraged executives at Toyota to increase the production overall.

Through what it seems like now, Toyota Motor Corp (ADR) (NYSE:TM) just wants to stream in money and for this the company is not even hesitant to invest hefty amounts. Assembly plants are the only things that can increase production and stream in revenues. So Toyota’s effort will be beneficial to them. However, no one knows yet why Toyoda has completely changed his mindset.

"We are always evaluating our production capacity in Mexico, and in North America generally, to keep it in line with local market demand, but no such decision has been made at this time," reported Toyota’s spokesman Itsuki Kurosu

Toyota company is also looking up for more land so that they can go global on a large scale. The change in strategy indicates that the company at this stage wants to get money. Obviously, increasing production results in a decline in terms of quality and Toyota is all set to embrace this fact.

Hence soon will be able to see an assembly plant that adds to the portfolio of Toyota resulting in more compact Corolla Sedans.