REPORT: Toyota puts hold on Russia, Thailand plant plans
Just because Toyota is still spending on Formula 1 and the Lexus LF-A doesn't mean its not cinching up the fiscal belts -- scaling back at the Detroit Auto Show, killing Australia's TRD division, and delaying a highly anticipated sports car. And now you can add stopping construction on new factories to that list.Toyota has a Camry assembly plant in St. Petersburg, Russia where it expected to build 20,000 cars in its first year. The plant didn't make its quota, so a proposed expansion of the facility to begin in 2010 has been put on hold.
In Thailand, Toyota intended to build a diesel engine plant this summer. The $155 million factory would have gone online in 2010 and made powerplants for Toyota pickups. That plan has also been scrapped for the time being.
[Source:Bloomberg]
Reader Comments (Page 1 of 1)
Mikeeeee 8:12AM (1/05/2009)
Where is Alabama's Senator Shelby when you need him??????
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Mobius_1 8:19AM (1/05/2009)
Maybe they are planning to do what Porsche does and outsource manufacturing rather than invest considerably to build themselves? It could work really well, look what it's done for Porsche's costs.
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rypt 8:28AM (1/05/2009)
I'm not buying a car built in Russia, even if it's a Toyota.
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ambientFLIER 7:47PM (1/05/2009)
You're an idiot.
caddy-v 8:33AM (1/05/2009)
Even in Russia real men don't drive Tundra's.
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ZeitgeistXIII 11:22AM (1/05/2009)
Well there are other things to consider besides the quota not being met. The Japanese may have issues with the current Russian government as it moves towards a more dictorial regime. Putin created a way to remain in power and with the current slowdown maybe they anticipate more nationalization in the future. Why expand a factory if it potentially is going to be taken away.
The same can be said of Thailand. Many companies have plants already in Thailand but one of the best things that decided it for them was the stablity of government compared to surrounding neighbors. Political turmoil is not good for business just look at Pakistan as an example form the leather goods and clothing trade.
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why not the LS2LS7? 12:00PM (1/05/2009)
I honestly don't know why anyone would build a plant in Russia when you have Poland and Germany (East Germany) less than a thousand miles away. Both of those have plenty of workers who can get the job done, and both probably provide a better mix of risk exposure versus labor costs.