Toyota to retool Kanda plant for start-to-finish midsize hybrid vehicle production

Toyota Motor Kyushu Inc., a subsidiary of Toyota Motor Corporation, will invest 1 billion yen ($11.7 million U.S. at the current exchange rate) to retool its plant in Kanda, Japan in order to establish a new start-to-finish manufacturing facility that's capable of producing all of the necessary components for the Toyota Sai and Lexus HS 250h hybrids on site. The overhauled facility, scheduled for completion in 2012, will have a production capacity of 150,000 units per year, with the majority of the vehicles headed to North American Toyota or Lexus dealerships.

Currently, the Kanda plant produces both the Sai and HS 250h hybrids, but engines are sourced from a nearby plant in Kamigo, Japan. The $11.7 million investment by Toyota will allow for the assembly of both the 2.4- and 1.8-liter engines fond in the aforementioned vehicles to occur on site. Toyota hopes that this integrated production method will allow the automaker to meet rising demand for its hybrid models while also lowering overall manufacturing costs.

[Source: Nikkei – sub. req. via Green Car Congress]