Toyota to increase global production: plans to produce 8.9 million units in 2012
Three group companies merge in the Tohoku area and will build an engine production line with...
Below is an outline of Toyota's plans to increase global production between September 2011 and 2012, to enhance overseas production capacities and to raise the efficiency of its domestic production activities.
Toyota will increase its production significantly starting in September 2011 on the grounds that its supply network is recovering from the impact of the great earthquake earlier than once anticipated. Toyota announced on August 2 that the company was set to produce 7.72 million units of Toyota and Lexus cars in fiscal 2011 or 380,000 units more than the total produced in fiscal 2010. In addition, Toyota reportedly has finalized a plan to produce a record-high quantity of 8.9 million units in 2012 (calendar year) and communicated with its parts suppliers accordingly. This represents Toyota's intention to recapture the market share in the United States and China that it lost as a result of decreased production.
Toyota follows a policy to raise the ratio of sales in emerging countries in the global market from 40% in 2010 to 50% in 2015, and will increase production capacities in overseas countries, especially in fast growing countries. To meet that goal, Toyota will increase the annual capacity in Thailand and Argentina combined by 100,000 units in the fall of 2011. The new Changchun Plant, China, will start production, and the New Mississippi Plant will start operating in the first half of 2012. Toyota will thus increase its overseas annual capacity by 480,000 vehicles from 2011 to the end of 2012, and by 820,000 vehicles by the end of 2013.
In July 2011, Toyota announced plans, regarding production facilities in Japan, to convert Toyota Auto Body and Kanto Auto Works to its wholly-owned subsidiaries, and a possible merger and integration of three of its group companies, namely Toyota Motor Tohoku Corporation, Kanto Auto Works, and Central Motor Co., Ltd. These decisions are aimed at streamlining the production network among the group companies to increase efficiency in production by promoting coordination toward more consolidated management, thereby contributing to maintaining the domestic production quantity at three million units. A high-efficiency production line was installed in Central Motor's New Miyagi Plant that will cut the investment by 40% and reduce manufacturing costs by 6%. Toyota will also introduce a small-scale, high-efficiency engine production line that will pay off at an annual capacity of 100,000 units.
Toyota intends to keep its domestic production quantity at three million vehicles through a series of these cost-reducing efforts. It must be noted, however, the high appreciation of yen in excess of 80 yen to the dollar is presenting a problem that cannot be removed by steady cost reducing efforts and, hence, Toyota will seek the greater use of imported parts and increased local contents in its overseas production.
FY2011 financial forecasts and production plans for calendar year 2012
Financial results for first quarter of FY2011 contain upward revision of FY2011 results forecasts
Toyota announced its financial forecasts for FY2011 on June 10, 2011, later than normally scheduled.
On August 2, Toyota's financial results for the first quarter of FY2011 (April to June) were announced that showed a 29.3% drop in revenue due to a decline in vehicle sales marking the first operating loss (107.9 billion yen) since the first quarter of FY2009. The announcement also included a correction of Toyota's assumed foreign exchange rate applicable through FY2011 to 80 yen to the dollar, 2 yen higher than originally planned.
However, on learning that the company would be able to recover from the earthquake disaster earlier than anticipated in June, Toyota's forecasts through FY2011 published in August included consolidated vehicle sales of 7.6 million units, 360,000 units more than the June 10 announcement, along with upward revision of net revenues by 400 billion yen to 19 trillion yen, and operating income from 300 billion yen to 450 billion yen.
Toyota's consolidated results
|(in millions of yen)|
|FY2008||FY2009||FY2010||FY2011 Forecast||Apr.-Jun. FY2010||Apr.-Jun. FY2011|
|announced in June||announced in August|
|Net Revenues Operating Income Income before taxes Net Income||20,529,570 (461,011) (560,381) (436,937)||18,950,973 147,516 291,468 209,456||18,993,688 468,279 563,290 408,183||18,600,000 300,000 320,000 280,000||19,000,000 450,000 500,000 390,000||4,871,825 211,663 263,004 190,466||3,441,050 (107,963) (80,531) 1,160|
|R&D Costs Depreciation Capital Expenditures||904,000 1,072,100 1,302,500||725,300 1,032,000 579,000||730,300 812,300 642,300||760,000 760,000 720,000||← ← ←||182,900 197,500 92,600||186,500 168,900 116,400|
|Vehicle sales (thousands of units)||7,567||7,237||7,308||7,240||7,600||1,820||1,221|
|FOREX Rates||$||101 yen||93 yen||86 yen||82 yen||80 yen||92 yen||82 yen|
|EUR||144 yen||131 yen||113 yen||115 yen||116 yen||117 yen||117 yen|
Source: Toyota's Financial Results (2011.5.11/2011.6.10/2011.8.2) (Note) The consolidated vehicle sales include those of Hino and Daihatsu but not the results of equity method affiliates such as those in China.
Toyota and Lexus vehicles: Producing 7.72 million units in FY2011, 8.9 million units planned for 2012 (calendar year)
Toyota will resume normal procurement activities in September and increase production by means of overtime and holiday work to restore its market shares that it lost in the United States and China due to a decrease in production after the March disaster.
To achieve that goal, Toyota will increase production capacity in overseas markets by 480,000 vehicles from 2011 to 2012 (for details, please see "Increasing overseas production capacity by 480,000 units in 2011-2012" later in this report). Toyota will increase production of the Prius α to fill the large backlog in Japan, and start production of a compact hybrid vehicle, which is expected to sell more than the Prius, at Kanto Auto Works' Iwate Plant toward the end of 2011. Toyota has plans to launch about ten all-new hybrid vehicles in Japan from 2011 to 2012 and Toyota's hybrid vehicle production in 2012 is expected to top the one million-unit mark for the first time (650,000 units produced in 2010).
With regard to numeric targets, the planned production quantity for Toyota and Lexus vehicles during fiscal 2011 was revised upward from 7.39 million units (announced in June) by 330,000 units to 7.72 million units in August. This represents an increase of 380,000 units from the 7.34 million units actually sold in fiscal 2010.
It has been reported that Toyota communicated with its major parts suppliers about the plan to produce a record-high number of 8.9 million vehicles (3.5 million in Japan, 5.4 million overseas) in 2012 (calendar year). Toyota is aware that the total quantity may end up between 8.6 and 8.7 million units depending on the economic trends in Europe and the United States although that will still exceed the past record of the 8.53 million units marked in 2007.
Production, sales and export of Toyota and Lexus vehicles
|(in thousands of units)|
|FY2008||FY2009||FY2010||FY2011 Forecast||Apr.-Jun. FY2010||Apr.-Jun. FY2011|
|announced in June||announced in August|
|Vehicle Production||Japan Overseas Total||3,393 3,710 7,103||3,206 4,072 7,278||3,004 4,338 7,342||3,030 4,360 7,390||3,140 4,580 7,720||781 1,032 1,813||411 779 1,190|
|Vehicle Sales (Retail)||Japan Overseas Total||1,340||1,586 5,755 7,341||1,407 6,153 7,560||1,300 6,000 7,300||1,350 6,100 7,450||373||179|
|Source: Toyota's Financial Results (2011.5.11/2011.6.10/2011.8.2)|
|(Notes) 1.||Statistics do not include those of Daihatsu or Hino but include actual results of the equity method affiliates, such as those in China. Statistics about domestic production, domestic sales and exports are the same as those in Toyota's unconsolidated results.|
|2.||Toyota's market share in the United States stood at over 10% in May to June 2011 (12.3% in July). It is regaining momentum and is expected to recover to the pre-disaster level of 14.2% (January to February) by March 2012.|
Unconsolidated results in FY2011 contain an operating loss of 370 billion yen despite upward revision
Toyota's unconsolidated financial results reflect operating losses in a row since fiscal 2008 as the result of a decline of domestic production (Toyota produced 4.19 million vehicles in fiscal 2006, 4.26 million in fiscal 2007, but production declined by nearly one million units after fiscal 2008), a worsened breakeven point of exports due to the high appreciation of the yen, and certain other factors.
One of the goals expressed in Toyota's "Global Vision" announced in March 2011 was to restore profitability to Toyota on an unconsolidated basis. However, Toyota foresees an operating loss of 370 billion yen in fiscal 2011.
Toyota's unconsolidated results
|(in millions of yen)|
|FY2008||FY2009||FY2010||FY2011 Forecast||Apr.-Jun. FY2010||Apr.-Jun. FY2011|
|announced in June||announced in August|
|Income before taxes||182,594||(77,120)||(47,012)||(10,000)||50,000||163,100||(3,600)|
Source: Toyota's Financial Results (2011.5.11/2011.6.10/2011.8.2) (Note) In "Global Vision" announced in March 2011, Toyota aspired to raise consolidated operating return on sales to 5% (operating income of about 1 trillion yen) and restore the parent company to profitability" despite the difficult management environment "at its present unit sales volume of 7.5 million vehicles and a foreign exchange rate of 85 yen to the dollar." Toyota's performance in fiscal 2010 showed an operating income of approximately 950 billion yen among the consolidated subsidiary companies but Toyota's unconsolidated operating loss of 480.9 billion yen pushed the consolidated operating income down to 468.2 billion yen.
Eyeing increased parts imports to fight yen's high appreciation
On the grounds that the recent high appreciation of yen in excess of 80 yen to the dollar is presenting a problem that cannot be solved by a series of cost reduction efforts in small amounts of 10 or 20 yen at a time, Toyota is resorting to increasing parts imports from its suppliers' overseas sites and increasing local contents of parts in overseas production.
Measures to fight the recent sharp rise in yen's appreciation
|Effects of yen's appreciation||For Toyota, 85 yen to the dollar is the barely permissible breakeven point and Toyota is studying from various angles what needs to be done to face the pressing rate of 80 yen to the dollar. Japan experienced a rise in the yen's appreciation of 16 to 17 yen between April 2010 and early August 2011. This is presenting a problem in the form of a loss in gross profit. For instance, an average manufacturer's price of a car to North American market is approximately $20,000 and 15 yen's rise in appreciation translates to a loss of 300,000 yen in gross profit per vehicle.|
|Change in competitiveness||Japanese automakers cannot jump to a price hike as easily as they did before, now that the market is full of foreign manufacturers (Korean, European) that compete well with the Japanese in terms of quality and costs.|
|Use of foreign parts||Today's foreign exchange level is presenting a problem that cannot be contained by a series of cost reducing efforts of 10 or 20 yen at a time. Such being the circumstances, Toyota will consider countermeasures that include increasing imported parts from its suppliers' overseas sites and raising the local content in its overseas production (while reducing shipment of production parts from Japan). This results in certain emigration of manufacturing in Japan which has become inevitable in today's market conditions.|
|Sticking to Japanese technological edge||Toyota will compete on its technological edge as it can no longer win over Korean vehicles in terms of costs including foreign exchange rates. To do so, Toyota must leverage Japan's technical development capabilities and production infrastructure of its own and its suppliers. This also compels Toyota to maintain a minimum production quantity of three million vehicles a year in Japan.|
Source: Q&A following the announcement of financial results for the first quarter of FY2011 (Note) Please see "Restructuring and efficiency enhancement of domestic production structure" below about specific efforts that Toyota has been making in the past years.
Restructuring and efficiency enhancement of domestic production structure
Domestic production restructuring plan announced in May 2010
Toyota announced its "Production restructuring plan" in May 2010 which contained domestic production restructuring plans including a broad review of production models and a more flexible, efficient production structure capable of responding to changes in demand.
According to the announcement, Toyota has shutdown one of the two lines at the Takaoka Plant in the spring of 2010 and converged three lines to only two at the Tahara Plant in the second half of 2010.
Domestic production restructuring plan announced in May 2010 (summary)
|Broad review of domestic production models||As a principle, mass-produced models for export will be "produced where demand exists" while plants in Japan will specialize more or less in models reflecting "new technologies, new concepts and new manufacturing methods."|
|Shifting to a flexible, efficient production structure capable of responding to changes in demand||Toyota will introduce mixed production lines designed to produce both monocoque and body-on-frame vehicles, and a specific platform-based production structure after defining the position, role and responsibilities of each plant and production line.|
Source: Toyota press release 2010.5.11
Establishing three manufacturing hubs in Japan with Tohoku area positioned as the hub for compact vehicles
In July 2011, Toyota announced the decision to convert Toyota Auto Body and Kanto Auto Works into Toyota's wholly-owned subsidiaries, which will enable management to make decisions that are in line with Toyota Group's overall direction and increase the speed of management.
Toyota also announced the merger and integration plans of three companies, namely Toyota Tohoku, Kanto Auto Works and Central Motor, by July 2012 if all goes as planned. The Tohoku area is positioned as the group's "third domestic manufacturing hub" after the Chubu and Kyushu areas. The merger plan aimed at converting the three Tohoku-based companies to a comprehensive automobile manufacturer responsible for the production of unit parts as well as the planning, development and production of compact vehicles. The resulting company will have an annual capacity of 500,000 units in the Tohoku area. The plan is also aimed at raising the local content ratio of parts (in Tohoku area) to 80%.
Toyota has introduced a new manufacturing technology in Central Motor's Miyagi Plant that cuts the investment in equipment by 40% and reduces manufacturing costs by 6%. Toyota will also resume the construction of an engine plant in Miyagi Prefecture that had been suspended.
Regarding the domestic production structure, Toyota admits some of the existing lines would eventually be removed as they grow obsolete (In the meantime, Toyota needs a high production capacity for increased production starting in the fall of 2011 in order to recover from the cutback that resulted from the earthquake damage).
Merging three Tohoku-based companies into a production hub for compact cars
|Toyota Motor Tohoku||A parts manufacturer wholly owned by Toyota, making controlled brake actuators (ABS/ECB), axles, torque converters, etc.|
|Kanto Auto Works||Currently making the Century, Crown, and Isis, and Corolla for exporting, at Higashi Fuji Plant (Shizuoka Prefecture), making small-sized cars including the Belta, Auris, Blade, Corolla Rumion, ist, and Ractis at Iwate Plant. Produced 364,000 units in fiscal 2010 at the two plants combined. The company is 50.1% owned by Toyota. It ended fiscal 2009 and fiscal 2010 with losses for two years in a row but is predicting a final profit of 5 billion yen in fiscal 2011.|
|Will assume full responsibility for planning, development and production of globally competitive compact cars. Starting production of small-sized hybrid cars at Iwate Plant toward the end of 2011.|
|Central Motor||A subsidiary wholly owned by Toyota. Its plant was relocated from Sagamihara, Kanagawa Prefecture to Miyagi Prefecture and the company started production of the Yaris for exports in January 2011 at the new Miyagi Plant (annual capacity of 120,000 units). Also started Corolla Axio production in April (the Sagamihara Plant was closed).|
Source: Toyota press release 2011.7.13, three companies' websites (Note) Central Motor's new Miyagi Plant has become the Toyota Group's state-of-the-art facility incorporating the best cost reducing measures as outlined next.
State-of-the-art equipment in Central Motor's new Miyagi Plant
|Efficiency enhancement and production cost reduction||(1) The paint line has been reviewed in terms of engineering methods and material. The number of drying processes was reduced from two to one and the line length was reduced by 25%. (2) The engine and the suspension assembly process now has a new line where auto bodies are placed sideways to increase the work efficiency. The applicable line length was reduced by 35%.(3) The conventional hanging-type conveyor system has been removed from the assembly line and replaced by a new style of conveyor for transporting auto bodies placed on pedestals. The ceiling height was reduced by 25% as the hangers were removed together with reinforcements.(4) These new engineering methods contributed to 40% reduction in initial investments and 6% reduction in manufacturing costs.|
|(Notes) 1.||A production line of higher efficiency will be installed in the Mississippi plant in the United States slated for production in the fall of 2011, the new plant in Brazil starting operations in 2012, and the new plant in Changchun, China.|
|2.||Toyota plans to invest around 700 billion yen a year (720 billion yen planned for plant investment in fiscal 2011) to achieve the same effect that required 1,300 to 1,500 billion yen a year during the peak years of plant investment from fiscal 2006 to 2008.|
New engine line designed for high-mix low-volume production
Toyota has developed a new engine production line that pays off from high-mix low-volume production. Part of the line at Shimoyama Plant (Aichi Prefecture) was replaced by the new line in the second half of 2010. The new line reduces the minimum pay-off capacity from 200,000 units to only 100,000 units. The new capacity is being applied to the engine plant in Miyagi Prefecture whose construction work was resumed. It will be applied to the plants overseas at the time of new construction or revamping.
Toyota intends to accelerate local production of engines and transmissions in overseas countries to minimize the impact of the yen's high appreciation.
New engine production line designed for high-mix low-volume production introduced in Shimoyama Plant
|Engine production line with annual capacity of 100,000 units||Toyota introduced a new engine production line in Shimoyama Plant (Aichi Prefecture). The new line began operating toward the end of 2010. It represents a new break-even structure that creates profit at half the conventional scale of 200,000 units, at an annual quantity of 100,000 units and reduces the necessary investment. The new line also shortens the time required for machine setup by using jigs and tools with greater freedom to meet demand changes in a more flexible manner.|
|Toyota intends to launch eleven hybrid models in 2011 to 2012 and also increase the engine variations for gasoline-fueled vehicles. Toyota's immediate issue is to produce a broader variation of engines at lower costs.|
New production line being adopted in engine plants in Japan and overseas
|Applied to the new engine plant in Miyagi||In July 2011, Toyota announced the decision to resume construction work of the new engine plant in Miyagi Prefecture. The plant construction was decided in 2008 but the plan had been shelved due to the sharp decline of demand after the financial crisis. The plant will be built by Toyota Motor Tohoku and production will start in 2012 at the earliest. The company will invest approximately 2 billion yen to build the plant with an assembly capacity of around 100,000 engines a year for small-sized hybrid cars to be produced by Kanto Auto Works' Iwate Plant starting at the end of 2011.|
|Initially the components will be shipped from Aichi Prefecture where there is a procurement network. Toyota will encourage parts manufacturers in Aichi to build facilities in the Tohoku area and also find new suppliers there towards the goal of having a total production capacity of 300,000 engines a year using local supplies within a few years. The engines will be used in the small-sized cars built by Kanto Auto Works' Iwate Plant and Central Motor's Miyagi Plant.|
(Note) Toyota has engine production capacity of around 6 million units in Japan including the engines to be exported to its vehicle production plants overseas. This means Toyota has surplus capacity of one million engines a year and yet the company is building a new engine plant in the Tohoku area for a number of reasons that include: (1) Toyota has surplus capacity to produce medium to large-sized (V6, V8) engines but not the four-cylinder engines and (2) it is an urgent issue for Toyota to produce small-sized cars including their parts and components in the Tohoku area and to suppress the costs of producing small-sized cars in Japan.
|Increasing engine production in China using a new method||Toyota plans to build three new lines in China in 2013 to produce 100,000 engines a year on each line for small-sized cars, thereby increasing its total capacity in China from one million to 1.3 million units. The plan requires investments in the amount of 20 to 30 billion yen.|
|Toyota will build two new lines, one for making the ZR-type engines (1600cc, 1800cc) and another for making the NR-type engines (1300cc, 1500cc), for Tianjin FAW Toyota Engine and a new line for making the NR-type engines for GAC Toyota Engine. The three lines will be of the same small-scale high-efficiency type with annual capacity of 100,000 units that was introduced in Shimoyama Plant in Japan.|
|The ZR-type engines will be used on the Corolla to be produced by Sichuan FAW Toyota Motor's new plant in Changchun starting in the first half of 2012. The NR-type engines will be supplied for the strategic small-sized cars to be produced by Tianjin FAW Toyota Motor and GAC Toyota Motor starting in 2013.|
Source: Nihon Keizai Newspaper 2010.11.20/2011.7.20, Nikkan Kogyo Newspaper 2011.7.28
Increasing production of 6-speed AT in the U.S.
|West Virginia plant in the United States||Toyota will invest US$64 million to increase the production capacity of the 6-speed AT at its West Virginia plant in the United States from 270,000 to 400,000 units by the end of 2012. Toyota will also invest US$8.4 million to increase the capacity for making cases and housings at its Bodine plant (in the state of Missouri) from 320,000 to 640,000 units. The 6-speed AT will be used with the V6 engines on the Camry, Avalon, RX350, etc.|
Source: Toyota press release 2011.2.26
Increasing overseas production capacity by 480,000 units in 2011 to 2012
The ratio of Toyota's vehicle sales in the industrialized nations such as Japan, the United States and Europe to the sales in emerging markets was 60:40 in 2010. Toyota plans to increase sales in the emerging markets and raise the ratio to 50:50 in 2015. Toward this goal, Toyota will make special efforts to strengthen local production models that include the IMV and newly-developed small-sized vehicles.
To follow suit of the Etios that was launched in the Indian market at the end of 2010, Toyota will launch its newly-developed small-sized models in Brazil, China and Indonesia.
Toyota will increase its overseas production capacity especially in emerging countries by 480,000 units from the second half of 2011 to 2012, and by 820,000 units by the end of 2013.
Toyota's overseas production capacity increasing plan from 2011 to 2013
|Year of increase||Capacity increase||Description|
|2011||September||Thailand||80,000||Increasing IMV production capacity from 140,000 to 220,000 units|
|November||Argentina||20,000||Increasing IMV production capacity from 70,000 to 90,000 units|
|Autumn||Mississippi (USA)||150,000||Starting Corolla production at the new plant in Mississippi|
|2012||Spring||Vladivostok (Russia)||10,000||KD production of Land Cruiser Prado (1,000 units a month)|
|First half||India||50,000||Increasing capacity by 50,000 units to 210,000 units at 1st and 2nd plants combined|
|First half||China||100,000||Starting Corolla production at the new Changchun plant|
|Latter half||Brazil||70,000||Building a new plant for producing small-sized cars designed for emerging markets|
|Two years' total||480,000|
|2013||Early||Indonesia||40,000||Increasing capacity from 100,000 to 140,00 units and producing all-new models|
|Early||India||100,000||Increasing capacity from 210,000 units as of the first half of 2012 to 310,000 units|
|By the end of the year||China||200,000||Producing 100,000 units of strategic small-sized cars each at two joint venture companies in China|
|Three years' total||820,000|
Source: Toyota press releases for each plan, Nihon Keizai Newspaper 2011.7.29 (Note) IMV is an abbreviation for Innovative International Multi-purpose Vehicle.
Regarding Toyota's operations in India, the company has been producing the IMV and the Corolla at the first plant, and the Etios since the fall of 2010 at the second plant of its local corporation. Toyota will invest 22.1 billion yen to increase its production capacity in India from 160,000 units as of July 2011 to 210,000 units in the first half of 2012, and to 310,000 units in 2013. Toyota will also increase facilities for making engine parts.
Enhancing production structure in India
|July 2011||First half 2012||Early 2013|
|First Plant||Annual production capacity Lineup||80,000 Innova, Fortuner, Corolla||90,000 Innova, Fortuner||100,000 Innova, Fortuner|
|Second Plant||Annual production capacity Lineup||80,000 Etios, Etios Liva||120,000 Etios, Etios Liva, Corolla||210,000 Etios, Etios Liva, Corolla|
|Investment||-||4.9 billion yen||17.2 billion yen|
|Source: Toyota press releases 2011.6.27/2011.7.27|
|(Notes) 1.||Toyota's local corporation in India, 89% owned by Toyota, is Toyota Kirloskar Motor (located in Bangalore).|
|2-1.||TKAP (Toyota Kirloskar Auto Parts Private Limited, located in Bangalore), 90% owned by Toyota Group, is making manual transmissions and other components for the IMV. It plans to produce 100,000 units of gasoline engines a year starting in the fall of 2012, and 240,000 units of transmissions a year starting in early 2013, both for the Etios.|
|2-2.||Toyota has announced another plan to invest approximately 14.4 billion to start aluminum casting and machining of the gasoline engines for the Etios in early 2014.|
Regarding operations in other emerging countries, Toyota has announced plans to increase production in Indonesia and to start KD production in Vladivostok in Russia, in addition to the plans for the plant in Brazil and the new Changchun plant in China that had already been announced.
Toyota is starting production of strategic small-sized cars in China in 2013 at its two joint venture companies there.
Increasing capacity in Indonesia, starting KD production in Far Eastern Russia
|Indonesia||Toyota is investing 16.5 billion yen in Karawang Plant of Toyota Motor Manufacturing Indonesia, a vehicle production company, to increase annual capacity from 100,000 to 140,000 units in early 2013.|
|In 2010, the Karawang plant produced 107,000 units of Kijang Innova/Fortuner (IMV series) and Avanza. The plant is expected to start production of a newly-developed strategic small-sized car.|
|Vladivostok, Russia||In March 2011, Toyota announced plans to assemble 1,000 units a month of the Land Cruiser Prado in a Russian city of Vladivostok starting in the spring of 2012, and sell them on Toyota's sales channel in Russia. Toyota has been producing the Camry at the St. Petersburg plant since 2007, and Vladivostok will be Toyota's second production site in Russia.|
|Production will be performed by OOO Sollers-Bussan, a joint venture company formed by Mitsui & Co. and Sollers, a Russian corporation, on a fifty-fifty basis. Toyota will provide production engineering and parts but has no immediate plan to invest in the local company.|
|Brazil||Toyota is investing approximately US$600 million to produce a newly-developed small-sized car (based on the Etios launched in India at the end of 2010) starting in the second half of 2012 in an initial quantity of 70,000 units a year. Toyota also plans to export the newly-developed small-sized cars to neighboring countries in Latin America. The Indiatuba plant, Toyota's existing plant in Brazil, is producing the Corolla with an annual capacity of 70,000 units.|
|New Changchun Plant, China||Toyota has announced plans to start operation of Sichuan FAW Toyota's new Changchun plant in the first half of 2012. The existing plant is producing the Land Cruiser with an annual capacity of 10,000 units. The new plant will produce the Corolla with an annual capacity of 100,000 units. The ground breaking ceremony of the new Changchun plant was held in October 2008 but the construction work had been shelved due to changes in the market environments.|
|Two joint venture companies, China||Toyota plans to invest approximately 40 billion yen in China to start production of 200,000 units of the strategic cars in 2013 for the emerging markets. The company plans to start the production at two joint venture companies at nearly the same time with an annual quantity of 100,000 units each. The production model will be slightly larger in size than the Etios launched in India and is likely to be powered by a 1500cc-class engine.|
Source: Toyota press releases 2010.4.28/2010.5.19/2010.7.6/2010.9.9/2011.3.1
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