Toyota Motor Corporation said Toyota Motor (Changshu) Auto Parts (TMCAP) has been established in the Changshu Southeast Economic Development Zone, Jiangsu Province, China and will start transmission production in September 2014 with initial capacity of 240,000 units a year.
Around US$285m is being spent on the new company which should create 850 jobs. The plant mainly will make the continuously variable transmissions (CVTs) Toyota uses with small petrol engines to improve driving performance while achieving high fuel efficiency. Toyota decided to begin CVT production in China in preparation for the expected demand increase there for small engine vehicles.
TMCAP president Hirokazu Yase said: "I am extremely pleased that, with the help of many people in China such as members of the central, provincial, and local governments, we were able to establish this new company. By producing CVTs in China, we will be able to provide high-performance, fuel-efficient cars to even more consumers in China."
TMCAP's plant, with a total area of approximately 140,000 sq m, will be about 2km northwest of the Toyota Motor Engineering & Manufacturing (China) (TMEC) R&D site currently being constructed in Changshu.