In a move that appears to be a response to US President Donald Trump's threats to companies who make certain vehicles in low-cost Mexico and then ship to the US, Toyota has said it plans to make pickups and possibly SUVs at a new plant in Mexico.
Reuters reported that Toyota had planned to produce Corollas at a new plant it is building but will now switch production of the small car to a new assembly plant planned for the US.
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Earlier this year Trump hit out at Toyota in a Twitter post and threatened to levy US import tariffs if the company made Corollas in Mexico and shipped them to the US. He made similar threats to Ford and GM.
According to Reuters, Toyota de Mexico spokesman Luis Lozano said Toyota would now make the Tacoma pickup at the Mexican plant and consider producing SUVs there.
"We're going to concentrate only on pickups at the beginning and are studying the potential for SUVs in the future," he told Reuters.
Last week Toyota and Mazda signed an agreement to enter a business and capital alliance covering several areas which will include a return to Mazda production in the US, again in a joint venture factory.
The companies have agreed to establish a joint venture that produces vehicles in the United States; jointly develop technologies for electric vehicles; jointly develop connected car technology; collaborate on advanced safety technologies and expand complementary products.
