NEW YORK -- Toyota Motor Corp. will send out part of its overseas vehicle production to its assembling affiliates Toyota Auto Body Co. and Kanto Auto Works Ltd. to help expand overseas output, a Japanese newspaper reported.
This would mark the first time Japan's top carmaker contracted with domestic vehicle assemblers to make cars abroad, the Nihon Keizai Shimbun (Nikkei) said in its online Wednesday edition.
Faced with a stagnant home market, Japanese carmakers have been shifting production abroad to tap demand and cut labor costs. Toyota officials were not immediately available to comment.
Toyota is considering outsourcing its Hilux SUV production in Thailand to Toyota Auto Body within the next year, and looking to have Kanto Auto Works operate its plants in Turkey and Brazil by 2005, the Nikkei said.
Toyota, which made 1.78 million vehicles abroad last year, hopes to achieve its goal of capturing 15 percent of the global auto market by 2010, up from the current 10 percent, the paper said.
In Thailand, Toyota plans to raise output at its local joint venture with Toyota Auto Body to 300,000 units by the end of 2004 from 77,000 last year, using the plant as an export hub for Southeast Asian and Oceania markets, the paper said.
Similarly, Toyota hopes to have its plant in Turkey continue to serve as an export base for the European market, and to expand production capacity at its Brazilian plant, the Nikkei said.