FAW Toyota may halt Changchun plant project

Mar. 26, 2009 (China Knowledge) - The joint venture between Toyota Motor Co and FAW Group, Sichuan FAW Toyota Motor, is likely to postpone its RMB 4 billion Changchun plant project due to the financing problems, the National Business Daily reported on Wednesday.

Chengdu-based Sichuan FAW Toyota Motor held a ceremony to mark the groundbreaking of the plant in Changchun, the capital city of Jilin Province. The plant, set to start production in 2010, has an annual production capacity of 100,000 units and will produce the Corolla model.

The paper said that FAW Group and the local government have already injected the initiative RMB 300 million. Toyota, however, has not injected any money, causing financing problem for the project.

Toyota China told reporters that there is no timetable for the project now and it will closely watch the market demand.

Toyota Motor has suffered its first loss in 59 years and it would reconsider or delay its new projects in the overseas market. The Japanese automaker has already halted its new plant projects in Thailand and India, said the paper.