Toyota Motor Corp., the world's biggest carmaker, may move production of some cars to Thailand, reducing its reliance on Japanese factories.
"We are starting consulting with Toyota Motor Japan, but things are not finalized yet," about moving some production to Thailand, Kyoichi Tanada, president of Toyota Motor Thailand Co., said in an interview in Bangkok. He declined to say which models are being considered and said a final decision may take as long as two years.
Automakers including Nissan Motor Co. and Ford Motor Co. are moving production to Thailand as manufacturing costs rise in other regions. Nissan plans to produce 90,000 March compact cars in the Southeast Asian nation this year, the company said yesterday. Ford, which has cut its U.S. workforce 47 percent since 2006, plans to make its Focus model at a new $450 million factory in Thailand by 2012.
Toyota, the largest automaker in Thailand, assembles its one-ton Hilux Vigo pickup truck and Fortuner sport-utility vehicle in the country for export. Lower costs and a strong supplier base are among Thailand's advantages, Tanada said.
The automaker, whose Vios is the best-selling car in the country, has raised its sales forecast for Thailand to 270,000 vehicles this year from an earlier estimate of 250,000, as the nation's economy recovers following the global recession, Tanada said.
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