Toyota May Build 8th North American Factory

TOKYO May 22, 2006; The AP reported that Toyota Motor Corp. is considering building its eighth North American factory in a southern U.S. state, a news report said.

Toyota, which has seen surging sales in the U.S., is looking at sites in Texas and other southern states for the plant, which may start production in 2009, Kyodo News agency reported Friday, citing anonymous company sources.

The factory will have an annual production capacity of about 200,000 vehicles, and will likely manufacture sport utility vehicles and other models, Kyodo said.

The news agency also said Toyota also wants to build a new engine factory in the U.S. Toyota officials weren't available for comment Saturday.

With sales booming around the world, Toyota is on pace to overtake General Motors Corp. as the world's biggest automaker.

Its models' reputation for good mileage has helped Toyota snatch U.S. market share away from struggling GM and Ford Motor Co. at a time when gas prices are soaring.

Toyota has said it wants to expand car production in the United States, such as plans to make up to 100,000 Camrys a year at a Subaru plant in Lafayette, Indiana.