A Toyota logo is seen on a car at City Toyota in Daly City, California, U.S., October 3, 2017. REUTERS/Stephen Lam
October 24, 2017
(Reuters) – Toyota Motor Corp <7203.T> intends to scale back investment in its planned auto plant in Mexico by 30 percent while slashing output capacity by 50 percent as part of a North American realignment to increase U.S. production, the Nikkei said.
The Japanese automaker will reduce investment in the Guanajuato-based plant to $700 million from an earlier planned $1 billion, the Nikkei reported. (http://s.nikkei.com/2z6cxvX)
The company will concentrate North American production of the Corolla in the United States to raise efficiency and had earlier announced $10 billion in investments over five years to renovate American plants.
The Mexico plant will instead be used to build Tacoma pickup trucks, the business daily said. Sales of the pickup have been increasing, helped by low fuel prices.
(Reporting by Sumeet Gaikwad in Bengaluru; Editing by Tom Brown)
