SWITCHING OUTPUT
Toyota bows to Trump with Mexican plan
Production of its small cars and a new Mazda SUV crossover moved to a new assembly plant planned for the US
Mexico City — Toyota Motor said on Friday that it planned to build pick-up trucks and possibly sport utility vehicles (SUVs) at a new plant in Mexico — a move that followed threats by US President Donald Trump to penalise the company if it built small cars south of the border. Toyota initially planned to produce Corolla sedans at the plant it is building in the central state of Guanajuato, but will now switch production of the small cars and a new Mazda SUV crossover to a new assembly plant planned for the US. Trump threatened in January to impose a hefty fee on the car maker if it built Corollas for the US market in Mexico. Toyota Mexico spokesman Luis Lozano said the global car maker would study producing SUVs in Guanajuato, in addition to the Tacoma truck model. "We’re going to concentrate only on pick-ups at the beginning and are studying the potential for SUVs in the future," he said. Trucks and SUVs represented about 65% of the North American market, Lozano said. The decision ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.