MEXICO CITY: Toyota Motor Corp on Friday stated it deliberate to construct pickup vans and probably SUVs at a brand new plant in Mexico, a transfer that adopted threats by US President Donald Trump to penalize the corporate if it constructed small automobiles south of the border.
Toyota initially deliberate to supply Corolla sedans on the plant it’s constructing within the central state of Guanajuato however will now change manufacturing of the small automobiles and a brand new Mazda SUV crossover to a brand new meeting plant deliberate for the USA.
Trump in January had threatened to impose a hefty charge on the world’s largest automaker if it constructed Corollas for the US market in Mexico.
Toyota de Mexico spokesman Luis Lozano stated the worldwide auto maker would research producing SUVs in Guanajuato, along with the Tacoma truck mannequin.
“We will focus solely on pickups at the start and are learning the potential for SUVs sooner or later,” he stated, including that vans and SUVs represented some sixty five % of the North American market.
The choice got here as Toyota deliberate to take a 5 % share of smaller Japanese rival Mazda Motor Corp as a part of an alliance that may see the 2 construct a $1.6 billion US meeting plant and work collectively on electrical automobiles.
A transfer to supply SUVs in Guanajuato would mark a continuation of a “burgeoning development” of Mexican manufacturing assembly high quality requirements wanted to supply costlier automobiles, stated Christopher Wilson of the Woodrow Wilson Worldwide Middle.
“As an alternative of constructing decrease worth automobiles that usually supply smaller margins in Mexico and maintaining excessive-worth SUV and luxurious mannequin manufacturing within the US, they’re shifting in the other way,” stated Wilson, deputy director of the assume tank’s Mexico institute.
“The strikes by Toyota appear to be designed to scale back political strain on the corporate from President Trump,” he added.
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