Toyota Plans $1 Bln. Mexico Factory

(RTTNews) - Toyota Motor Corp (TM) on Wednesday revealed plans to invest about $1 billion for a new Corolla plant in Mexico, as part of efforts to realign operations in North America.

The Japanese automaker said the new plant would be located in the state of Guanajuato, Mexico, with a capacity to produce 200,000 units annually. The new plant will be Toyota's first significant expansion since 2011 and its largest investment in Mexico.

Toyota said that once Corolla production begins in Mexico in 2019, the company would transform its Cambridge, Ontario North Plant to switch from producing Corollas to mid-sized, higher-value vehicles.

The automaker will also make significant new investments over several years in assembly plants in Cambridge and Woodstock, Ontario.

"We are thrilled to invest further in North America so we can better meet the needs of our customers for decades to come," said Jim Lentz , chief executive officer of Toyota North America.

Mexico is gaining interest among automakers for its low-wage labor and free-trade agreements with some countries.

Toyota is also reportedly investing $440 million for a manufacturing line in China.

The automaker expects to complete its new Chinese line by 2017 at its plant in Guangzhou, targeting production of about 100,000 vehicles a year.