Strong domestic sales prompt Toyota to plan for new plant
AFP, Tokyo
Japan's top carmaker and the world number two Toyota Motor said Monday it is reviewing domestic production in light of strong sales while reports said it will build a large engine plant in southern Japan. "Nothing has been decided but we are reviewing our production system given strong sales this year," a Toyota spokeswoman said. The Nihon Keizai Shimbun and other media said Toyota planned to invest more than 20 billion yen (188 million dollars) to build the factory in Fukuoka prefecture, 900 kilometres (560 miles) southwest of Tokyo. The factory will have annual production capacity of some 200,000 engines, with operations expected to start in 2006 at the earliest, they said without citing sources. Toyota has three engine plants in the central Japan prefecture of Aichi, where it is based. It last opened an engine plant in July 1990, said the Toyota spokeswoman. The Nihon Keizai business daily said the new plant would likely build 2.4-3.0-liter gasoline engines to be installed on Lexus sport utility vehicles and other cars.
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