Toyota To Assemble Prius Model In Changchun
Plant
Toyota plans to assemble its best-selling Prius model
in a Changchun plant in a joint venture with the FAW Group.
The gasoline-hybrid electric Prius model has been a runaway
best-seller in the European and North American markets,
giving it a jump on its competition. Toyota's Detroit
competitors do not expect to come out with major hybrid
models until 2006 at the earliest.
The Toyota announcement of the Prius deal follows closely
on its announcement of an investment in south
China. Toyota aims to increase market share in the
Chinese market from the current 3% to 10%. In 2003, in
a move aimed at currying ties with the Chinese government,
Toyota announced that it would share its hybrid
technology with local Chinese technology research
organizations.
Current plans call for Toyota to assemble Prius kits
in Changchun, a major industrial city in northeast China.
All Prius models are now manufactured in Aichi prefecture
in Japan. The Changchun joint venture will be the first
time the hybrid Prius has been manufactured outside China.
Toyota has had trouble meeting demand for the Prius, and
it is highly likely that manufacture of the car will contunue
to expand overseas if demand continues.
Akio Toyoda, the managing director of the company, said
that Toyota expects China to become the single most important
auto market in the world. The FAW Group has been manufacturing
Toyota Landcruisers in China since last year.
Gasoline prices are controlled by the state, and are
now at US$1.66 a gallon. Prices have not risen since May.
However, fears of gas price rises, and serious energy
shortages over the summer, have forced many Chinese to
be energy-conscious in their consumption habits.
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