Toyota Plans To Boost Parts Production

Considering increasing engine production for SUVs.

In response to brisk global sales, Toyota Motor Corp. said Nov. 29 it was looking at a plan to boost its production of auto parts including engines. "We are currently considering strengthening our production capacity of main automobile parts in Japan to respond to brisk demand at home and abroad," said Toyota spokesman Paul Nolasco.

"We will announce it as soon as we officially decide on the plan," he said, adding: "It is true that our sales of sport utility vehicles are strong especially in the United States."

Earlier the Nihon Keizai Shimbun reported that Toyota plans to invest 20-30 billion yen ($172-$258 million) to build a new engine production line in Fukuoka prefecture in southwestern Japan. The new line will begin operating in 2008 with an annual capacity of around 200,000 units, doubling the site's manufacturing capacity, the report said.

The new facility will produce 3-liter V-6 gasoline engines for cars manufactured by Toyota Motor Kyushu, including the Harrier and Kluger sports utility vehicles.

Toyota, the world's second-largest automaker which is on track to overtake General Motors for the global top spot, will also consider exporting the engines, the report said.

Toyota forecasts its global sales will reach 8.85 million vehicles in 2006, and aims to boost sales worldwide to 9.8 million vehicles in 2008.

Copyright Agence France-Presse, 2006

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