Toyota Motor Corp. aims to make hybrid drivetrain components in the United States and elsewhere overseas within four years, after years of reserving production of those high-tech parts for its Japanese plants.
The decision aims to support higher hybrid-vehicle unit sales globally. Manufacturing hybrid batteries, electric motors and inverters outside Japan is seen as the next step in Toyota’s goal to fuel sales of the gasoline-electric cars through overseas assembly.
“Right now, hybrid component production is too biased toward Japan,” Shinichi Sasaki, Toyota’s executive vice president in charge of global purchasing
He said the new strategy calls for making the components at global production centers that will ship the parts to hybrid vehicle assembly plants worldwide. The components likely would be built in North America and other markets such as Southeast Asia and China, he predicted.
Overseas hybrid assembly
“We have to devise a tactic roughly within a year that can be reflected in our next-generation procurement policy,” he said. “That means this may be implemented in three or four years’ time.”
Toyota sources batteries, inverters and motors solely from Japan, where it makes the vast majority of its hybrid vehicles, including the segment-leading Prius. But it is boosting assembly of hybrids overseas -- with parts imported from Japan that are subject to fluctuating, and recently unfavorable, exchange rates.
“Are we really going to produce all three types of hybrid components in the United States? Not necessarily,” Sasaki said. “We probably need complementary production in different regions, like some produced in China, or some in Southeast Asia and some in the United States.”
Toyota plans to build and sell 50,000 units of the new generation Camry Hybrid a year in North America. It also makes about 30,000 Auris Hybrids annually in Britain and plans to start making a hybrid version of its Yaris small car in France next year.
Volume outside Japan
In 2009, Toyota halted production in China of the second-generation Prius, with vehicles built from kits imported from Japan, but aims to resume Chinese production at some point. Toyota continues to make knockdowns of the Prius and Camry Hybrid in Thailand and the Camry Hybrid in Australia.
Speaking at the Frankfurt auto show, Takeshi Uchiyamada, Toyota's executive vice president overseeing r&d and engineering, said volumes outside Japan are high enough to warrant the supplier shift.
“We are entering a stage of possible local procurement,” he said. “We need to do that to keep and increase our competitiveness.”
The decision aims to support higher hybrid-vehicle unit sales globally. Manufacturing hybrid batteries, electric motors and inverters outside Japan is seen as the next step in Toyota’s goal to fuel sales of the gasoline-electric cars through overseas assembly.
“Right now, hybrid component production is too biased toward Japan,” Shinichi Sasaki, Toyota’s executive vice president in charge of global purchasing
He said the new strategy calls for making the components at global production centers that will ship the parts to hybrid vehicle assembly plants worldwide. The components likely would be built in North America and other markets such as Southeast Asia and China, he predicted.
Overseas hybrid assembly
“We have to devise a tactic roughly within a year that can be reflected in our next-generation procurement policy,” he said. “That means this may be implemented in three or four years’ time.”
Toyota sources batteries, inverters and motors solely from Japan, where it makes the vast majority of its hybrid vehicles, including the segment-leading Prius. But it is boosting assembly of hybrids overseas -- with parts imported from Japan that are subject to fluctuating, and recently unfavorable, exchange rates.
“Are we really going to produce all three types of hybrid components in the United States? Not necessarily,” Sasaki said. “We probably need complementary production in different regions, like some produced in China, or some in Southeast Asia and some in the United States.”
Toyota plans to build and sell 50,000 units of the new generation Camry Hybrid a year in North America. It also makes about 30,000 Auris Hybrids annually in Britain and plans to start making a hybrid version of its Yaris small car in France next year.
Volume outside Japan
In 2009, Toyota halted production in China of the second-generation Prius, with vehicles built from kits imported from Japan, but aims to resume Chinese production at some point. Toyota continues to make knockdowns of the Prius and Camry Hybrid in Thailand and the Camry Hybrid in Australia.
Speaking at the Frankfurt auto show, Takeshi Uchiyamada, Toyota's executive vice president overseeing r&d and engineering, said volumes outside Japan are high enough to warrant the supplier shift.
“We are entering a stage of possible local procurement,” he said. “We need to do that to keep and increase our competitiveness.”
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