Toyota to invest $1 billion on new Mexico plant, create 2,400 jobs: source

Mon Apr 13, 2015 10:50pm EDT
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By Joanna Zuckerman Bernstein and Alexandra Alper

MEXICO CITY (Reuters) - Toyota Motor Corp (7203.T: Quote), the world's biggest automaker, will spend $1 billion to build a car factory in Mexico and plans to announce the investment on Wednesday, two sources with direct knowledge of the matter said.

The 200,000-cars-a-year factory in the central state of Guanajuato will create about 2,400 direct jobs, one of the people told Reuters, declining to be identified because the plan was not yet public.

Reuters reported earlier that the factory – Toyota's first to build passenger cars in Mexico - would produce the Corolla compact car from the summer of 2019, ending a self-imposed three-year freeze on new investments.

President Enrique Pena Nieto will attend the announcement in Mexico on Wednesday, the people said.

A Toyota spokeswoman in Tokyo said nothing had been decided.

Toyota President Akio Toyoda had declared a pause on expansion to ensure growth did not come at the expense of quality, after the automaker was burned by a recall crisis in 2010.

Toyota is vying with Volkswagen AG (VOWG_p.DE: Quote) and General Motors Co (GM.N: Quote) to claim the title of top-selling global automaker, with each selling about 10 million vehicles a year.

Sources have said Toyota also plans to announce a new car factory in Guangzhou, China, this week.   Continued...

Members of the media are shown under a large Toyota logo during the first press preview day of the North American International Auto Show in Detroit, Michigan, January 12, 2015.   REUTERS/Mark Blinch