Toyota may build second plant in China's northeastern city of Changchun

Shanghai. March 6, 2008; (Gasgoo.com) Toyota Motor may plan to build a second plant in northeastern city of Changchun, Jilin province to boost its capacity and sales in Chinese market, local Chinese newspaper reported today.

The newspaper report said Toyota Motor is planning to build new production facility in Changchun with an annual capacity of 100,000 vehicles. Currently, Toyota has only a small production plant where Toyota hybrid Prius vehicles are produced.

Earlier Japanese media reports said Toyota planned to build a $469 million production unit in Changchun but the plan could not be executed until 2010.

However, Toyota China's spokesman said that they were not informed of such a plan.

"If Toyota builds such a major production plant in Changchun, the automaker may move its Corolla and other models to Changchun plant," said a source familiar with Toyota's operations in China.

Currently Toyota has three joint ventures: Tianjin FAW Toyota, Sichuan FAW Toyota and Guangzhou Toyota. The three joint ventures operate four plants in China.

Tianjin FAW Toyota Co. operates two plants in Tianjin: Plant No.1 currently builds Corolla and Vios, a sedan variant of the previous-generation of Yaris and Plant No. 2 builds the Crown and Reiz upscale sedans. The letter is derived from the Japan-market Mark X, according to China Automotive News

In Changchun, Jilin province, Sichuan FAW Toyota has the capacity to build 10,000 Land Cruiser SUVs and Prius hybrid cars, with 500 workers.

In Chengdu city, Sichuan FAW Toyota has the capacity to build 13,000 Coaster small buses and Land Cruiser Prado SUVs, with 1,300 workers.

Guangzhou Toyota now has a capacity to produce 200,000 Camry vehicles and compact sedan Yaris will be produced in Guangzhou this year. In November, Chinese authorities have approved Guanghou Toyota's plan to build a second plant in Guangzhou. The total capacity of Guangzhou Toyota, after the completion of the second plant, will reach half a million units annually.

Guangzhou Toyota plans to sell 210,000 vehicles in China this year, Ge Yuanzhe, general manager of Guangzhou Toyota, unveiled the 210,000 sales target to reporters last month.

"Considering the current sales records, we are confident to reach a sales target of 170,000 units this year," said Feng Xingya, deputy general manager of the joint venture. With average monthly sales of 14,000 units, Camry has held its No.1 position in the upper and middle sedan segment for 12 consecutive months.

Specifically, Guangzhou Toyota expects to sell 175,000 Camry vehicles and 35,000 Yaris vehicles, a compact sedan which is to be produced in Guangzhou Toyota's second plant by mid-2008.

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