OREANDA-NEWS. Toyota announced today that it will build a new plant in Mexico and expand its joint venture, Guangzhou Toyota Motor Co., Ltd. (GTMC), in China. These investments are grounded on its plans to construct production lines that are more competitive, with greatly reduced initial investment, improved efficiency, flexibility, environmental performance and safety. These "simple and slim" production lines can be easily lengthened or shortened depending on demand. Over-head conveyance devices are eliminated, compact equipment is installed on top of the plant floors, and paint-booths are smaller.

The new plant in Mexico and the expansion in China will be designed to accelerate innovation by implementing these new technologies into real production lines.

With today's announcement, Akio Toyoda, President of Toyota Motor Corporation said "This investment represents our long-held principles of continuous improvement and challenging ourselves to always do better. An increase in production does not mean an undisciplined pursuit of more. Toyota's expansion must be driven by providing ever-better-cars and our talented people. These investments will be an important test of Toyota's resolve and a measure of tangible improvement."

Toyota had previously suspended construction of new plants in order to improve capacity utilization of existing plants and plan for reduced model change-over and new plant construction investment. Currently, total capacity utilization is more than 90 percent and the initial portion of new simple and slim plant costs, including structure and equipment, is expected to be approximately 40 percent lower when compared to 2008. Considering these achievements and forecasted steady growth of the global auto market, Toyota is taking these steps.