Toyota establishing new Energy Saving and New Energy Vehicle Technical Center in China; development group for production of China-made hybrid vehicles
22 October 2011
Toyota Motor Corporation (TMC) will establish the “Energy Saving and New Energy Vehicle Technical Center” at its new Toyota Motor Engineering & Manufacturing (China) Co., Ltd. (TMEC) R&D Center in the Changshu Southeast Economic Development Zone in Changshu, China. Toyota plans an overall investment of US$689 million in TMEC.
TMEC will work to strengthen automobile-manufacturing R&D in China by cooperating with R&D centers established at its China joint-venture companies with China FAW Group Corporation (FAW) and Guangzhou Automobile Group Co., Ltd (GAC). Starting in 2013, when its major facilities are to be completed, TMEC will support vehicle development carried out by Toyota joint-venture companies in China, through the development of engines for vehicles manufactured at those companies, the testing and evaluation of vehicles at its large-scale test course and the thorough quality verification of vehicles for launch in the Chinese market.
Specifically, TMEC will develop advanced component technologies while the R&D centers of the two Chinese joint-venture companies will focus on the development of vehicle bodies. TMEC is also promoting the spread of environmental technologies in China to establish it as a base to develop the component technologies required for leading environmental vehicles.
The Energy Saving and New Energy Vehicle Technical Center, established for this purpose, will communicate with a wide range of external parties, including joint-venture partners, suppliers, and other manufacturers regarding environmental technologies. TMEC will carry out field operational tests with a mind toward the launch of environmental vehicles such as plug-in hybrid vehicles and electric vehicles in China.
In addition, TMEC will proactively collaborate with universities and other third-party organizations to conduct research into fundamental technologies.
Toyota also plans to create a development group for the production of China-made hybrid vehicles, including the localization of hybrid system components. Plans call for the manufacture and sales of vehicles equipped with China-produced hybrid systems at and through FAW and GAC joint-venture companies by around 2015.
China and India will soon have a combined population of close to 3.0 billion people and will represent the world's largest car and truck markets.
That being said and with economies moving East instead of West, it is very wise to move R & D and manufacturing facilities into those two countries. Higher growth and lower labor cost is a recipe for higher future profits.
Posted by: HarveyD | 22 October 2011 at 09:53 AM
Very wise indeed.
This saves the shipping cost of transferring technology to China.
Posted by: ToppaTom | 22 October 2011 at 03:44 PM
Sustained Growth at 9+% versus 1% may have something to do with it?
Posted by: HarveyD | 23 October 2011 at 06:40 AM