Toyota Motor Corp.'s TABC Inc. parts subsidiary in Long Beach, Calif., will build engines for Tacoma pickups made in California and Mexico. This will be the first instance of a subsidiary building engines for the company in North America.
The wholly owned subsidiary initially will build 68,000 four-cylinder engines a year, starting in 2005. Toyota builds about 150,000 Tacomas annually at New United Motor Manufacturing Inc. in Fremont, Calif. TABC will build a second Tacoma plant in Baja, Mexico, which will build 20,000 trucks a year there in 2005. But most Tacomas use V-6 engines made in Japan.
TABC, a 30-year-old U.S. business unit, also produces catalytic converters and pickup truck beds. It is also setting up production of Hino medium-duty trucks in North America.