Toyota Motor and its Chinese ally Guangzhou Automobile have agreed to increase engine output by building a second production line at the joint venture based in Guangzhou in Guangdong Province, southern China.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
According to Kyodo News, Toyota said the agreement calls for raising the annual output capacity at the venture, Guangqi Toyota Engine Co., to 500,000 units from the current 300,000 to satisfy greater global demand for the automaker’s two-litre and 2.4-litre AZ petrol engines and cost 1.9 billion yuan.
The report said the line will begin manufacturing crankshafts, camshafts and other engine parts in mid-2006 with production of complete engines from the end of 2006.
The plan calls for exporting the engines to Japan in addition to installing them in vehicles assembled in China.
In 2004, Toyota and Guangzhou Automobile set up an automobile production base, Guanzhou Toyota Motor Co., with an eye to starting production of the Camry car equipped with the AZ engines in mid-2006, Kyodo News noted.
