Toyota and its parts and component suppliers plan to invest at least around $US700 million to make Thailand its global production base for pickup trucks, diesel engines and minivans, Associated Press reported.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
“The global network for production of pickup trucks, multipurpose vehicles and major vehicle components outside of Japan is a crucial part of Toyota’s global strategy,” Toyota managing director Akio Toyoda said at a news conference on Thursday in Bangkok, according to AP.
AP said that, after the upgrade, the value of vehicle and diesel engine exports from Toyota’s Thai units is expected to reach $US1.2 billion per year, and Thailand will also benefit from about 10,000 new jobs and development of its skilled worker base.
According to AP, Toyota Motor Thailand currently produces 90,000 pickup trucks and multipurpose vehicles annually and exports 10,000 of those units, mostly to countries of the Oceania region, including Australia.
By mid-2004, the company will more than double production to 200,000 units a year, exporting half of them to more than 80 countries and territories in the Middle East, Europe and the Asia-Pacific region, AP added.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataAP said that another unit, Siam Toyota Manufacturing, would serve as a global production base for diesel engines.
Production of direct injection diesel engines will rise to 240,000 units per year from the current 150,000 units, AP said.
AP said that, at the same time, original equipment manufacturing parts for pickup trucks and multipurpose vehicles produced by Toyota Thailand, Siam Toyota and other domestic suppliers would be exported to Toyota’s manufacturing plants in nine countries around the world.
