The Japanese business daily Nihon Keizai Shimbun reports that Toyota will build an engine plant in the northern Chinese city of Changchun by 2005. The Nikkei publication said that Toyota would launch a new company to produce engines with China’s First Auto Works (FAW) Group by the end of this year.
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The report said that the plant will be built in Changchun – home to FAW – and will start producing 50,000 engines a year in 2005.
The Changchun plant’s engines will be used in Toyota’s Crown luxury sedan to be produced at a new plant in Tianjin, as well as FAW’s Red Flag (Audi 100-based) model, according to the Nikkei report. Under an agreement signed in April, Toyota and FAW are to build a plant in Tianjin to produce cars based on Toyota’s Crown model from 2005 at the rate of 50,000 units a year.
The report also said that Toyota’s Hino Motors commercial vehicle unit would start producing trucks and diesel engines in Shanghai from 2004.
