Toyota to decide on new U.S. plant location in early next year

2016 Toyota Tacoma

Toyota Motor should decide by the first quarter of next area on an area for a new U.S. car assembly plant it will construct with Mazda Motor, the head of Toyota’s North American operations stated.

“The final decision has not been made,” Jim Lentz, CEO of Toyota North America, informed Reuters in an interview in Detroit. Over one state remains in the running for the $1.6 billion plant, Lentz informed.

Toyota and Mazda’s strategy to construct a new U.S. factory belongs to a wider wave of investment in North American production capability by European and Asian automakers. The boosted vehicle-making capacity is coming regardless of projections that U.S. vehicle demand is striking a plateau.

The new factory is part of a more comprehensive realignment of Toyota’s production and supply chain in North America. The new plant is anticipated to construct an SUV for Mazda, and Corolla compact vehicles for Toyota. The Canadian plant that presently constructs Corollas will have the ability to construct more SUVs. Toyota likewise plans a factory in Guanajuato, Mexico that will construct Tacoma pickup, maximizing Toyota’s present factory in San Antonio, Texas to construct more Tundra large pickups.

Toyota’s production technique for the continent could be interrupted if negotiations amongst the United States, Mexico and Canada to modify the North American Free Trade Agreement (NAFTA) stop working, and U.S. President Donald Trump decides to leave the trade pact.

“I think the government will make the right choice,” Lentz stated. “They will tweak, rather than throw away” the present agreement that permits tariff-free sell vehicles and parts.

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