By on May 14, 2010

While bullets fly in Bangkok, Toyota announced today that production at a Toyota plant near Bangkok will cease by the end of May. Toyota says the plant closure has nothing to do with the public unrest, it should be seen on the context of the reorganization of Toyota’s global operations, says The Nikkei [sub].

The plant makes the Fortuner SUV and the Hilux Vigo pickup truck. Production and workers will be shifted to other plants in Thailand, of which Toyota has three.

Earlier in the week, Toyota had released plans to readjust worldwide production. Basically, the plan follows the market, both in terms of cars and foreign exchange.

“One of our fundamental principles is to produce vehicles where there is demand,” says a corporate communiqué. Toyota will consolidate production in Japan, and increase output in China and India. NA and EU are considered as important markets, but the production structure in NA is being “examined” and product trends in Europe are being “monitored.”

Japanese assembly “of the Corolla and other mass-market cars destined for export is expected to be gradually phased out in favor of local production in individual markets,” says The Nikkei [sub].

In booming China, Toyota restarted previously shelved plans to build a new factory for the joint venture with FAW in Changchun. Production will start in the first half of 2012. In emerging India, a compact-car factory will begin operation within a few months.

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