TOKYO – Toyota Motor Corp. is confirming a planned Mexico auto plant is being scaled back, but a top executive says the decision is because of market needs and not a political move.
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The investment for the Guanajuato plant, set to be running in 2019, will go down to $700 million from $1 billion announced in 2015, and annual production will decrease to half at 100,000, according to Toyota.
The initial plan was to build 200,000 Corolla subcompacts a year.
Executive Vice President Didier Leroy told reporters on the sidelines of the Tokyo Motor Show Wednesday that the move is to increase truck production for the U.S. market and not to please anyone, an apparent reference to President Donald Trump.
