FAW Toyota new plant to produce Corola car in 2012

Shanghai, May 4 (Gasgoo.com) Reporters currently got the news from Toyota China that Sichuan FAW Toyota Motor Co., Ltd. has resumed construction of its new Changchun plant, i.e. FAW Fengyue Automobile Co., Ltd. this month and decided to put it into operation in the first half of 2012. The early production model at the new plant will be Toyota's hot-selling Corola, with an initial annual capacity of 100,000 vehicles and the total investment amount of approximately 3.8 billion yuan ($556 million).

The first-quarter loss in sales and the recall events have affected Toyota's investment strategy in China, but the main cause of the company's suspension of FAW Fengyue Automobile Co., Ltd. is still financial problems. Relevant resources of the Group's Finance Department said to reporters.

Changchun municipal government, Toyota Co. and FAW Group will support the construction of the new plant by providing government subsidies, reducing profit distribution, etc., and the supports will be in land funds, plant construction funds, importing equipments and other aspects. Although the construction of the new plant has been resumed, financial problems are still not fully resolved.

However, Toyota (China) Public Relations person in charge Xu Yiming denied the saying and pointed out that since the production time has been determined, there should be no construction funds problems any more.

An insider in Tianjin FAW Toyota revealed in an interview that after the resumption of the expansion work, FAW Fengyue Automobile Co., Ltd. will absorb employees from Tianjin FAW Toyota who have come from Changchun city, capital of Jilin Province, and Tianjin FAW Toyota will then recruit new employees to fill the gaps.

Reportedly, early production of the Corola model at FAW Fengyue Automobile Co., Ltd. is only the first step in that the RAV4 model is also likely to be produced there. In addition, the new plant will still manufacture the Landcruiser model as planned, while the Prius model, suspended previously, will be produced and sold again after being remodeled.