Toyota Investigating Mexico for New Assembly Plant
Mexico is fast becoming a huge producer of automobiles and Toyota is now investigating the country for a location to build a new plant.
Honda, Mazda, Nissan, Kia and BMW have all expanded into Mexico, so Toyota following suit would not come as a surprise. Low labor costs and high tax incentives are two of the driving factors behind the move, along with expanding capacity in the NAFTA region. Shipping vehicles to the fast growing market of South America is also made more convenient by producing the cars in Mexico.
Toyota already has a small foothold in Mexico through a partnership with Mazda that will see 50,000 Toyota’s built in the country. A small factory in Tijuana also builds Tacomas for Toyota, with output totaling roughly 63,000 units yearly.
The Mexican government estimates that $10 Billion in factories have been announced for the country since December, 2012. This year, auto output is expected to reach 3.2 million vehicles.
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