Recently, Toyota announced another major move in terms of production. Already heavily invested in Canada, the United States, and South America, Toyota, Japan’s top manufacturer, will be investing about one billion dollars in a new Mexico plant for Corollas. Your Pennsylvania Toyota dealership wants to tell you all about it.
The What
For the first time in three years, Toyota has announced a new plant. The new facility will be massive and employ around 2,000 people in the town of Guanajuato in central Mexico. The plant will be exclusively for Corolla production and is estimated to produce nearly 200,000 units a year after it finishes construction in 2019.
The Why
There are three core reasons for Toyota’s interest in Mexico. The first is that producing cars closer to its biggest market is a must for the automaker. The second reason is that Mexico, in efforts to attract large businesses like Toyota, offers highly competitive labor rates and overhead costs. Finally, the free trade agreements that exist between Mexico and the rest of North and South America allows the vehicles to move to market with far less cost than crossing an ocean.
The Result
Ultimately, the benefit to the American consumer will be noticeable. By increasing the amount of cars available and decreasing the cost of production and shipping, you can expect to see another dip in the price of one of America’s favorite cars. The other piece to consider is that several companies are investing in brand new facilities in order to bring a state-of-the-art product to market. Expect to see big changes for the Corolla and other Toyota brands.
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