Japan’s Toyota will open its second plant in Mexico on Thursday, with an investment of about $700 million dollars, the company said, amid a slowdown in the automotive industry in the country.
The facility, located in Guanajuato, will employ about 1,300 people and has a capacity to assemble 100,000 units of the Tacoma truck that will go mainly to the US and Mexican markets.
Toyota announced the construction of its new plant in April 2015. At that time, it planned to inject one billion dollars in Mexico and start production of Corolla, its best-selling model in the world.
However, in October 2017 and given the low demand for compact cars in the United States, the company decided to reduce the investment to $700 million dollars and devote the new plant to assembling more Tacomas.
Last year, local manufacturing and export of vehicles receded and by 2020, the automotive industry established further decline in Mexico auto sales.
The ratification of the Mexico, United States, and Canada (T-MEC or USMCA) Treaty would give this beaten sector greater certainty, fundamental to the Mexican economy.