Toyota group eyes Sendai factory

Toyota subsidiary Central Motor Co. said Tuesday it will build a factory to assemble automobiles north of Sendai.

A Land Cruiser is on prominent display Sunday at a Toyota Motor Corp. showroom in Tokyo. AP PHOTO

The factory's location will be an industrial complex in the village of Ohira, Miyagi Prefecture. With an investment of about ¥50 billion, it will become operational around 2010, the company said.

Central Motor will relocate its head office and factory in Sagamihara, Kanagawa Prefecture, to the planned factory by 2010, the company said.

It will be the first vehicle assembly plant set up by the Toyota group since 1993, when subsidiary Kanto Auto Works Ltd. established a plant in Iwate Prefecture.

Central Motor makes the Corolla Axio passenger car, the Raum minivan and other Toyota models. It turned out 120,000 vehicles in 2006.

Construction of the Sendai factory is designed to bolster Central Motor's production efficiency.

The Toyota group's global production is expected to eclipse 10 million units in 2009.

The group's existing factories are currently running at almost full capacity, so the addition of the new plant is designed to enable Toyota to meet greater demand.