Toyota Joint-venture engine plant in China begins production of advanced four-cylinder engines
10 November 2011
Toyota Motor Corporation (TMC) announced that GAC Toyota Engine Co. Ltd (GTE), a joint venture company established with Guangzhou Automobile Group Co. Ltd (GAC), began production in October of a lineup of four-cylinder, in-line AR engines at its plant in Nansha, Guangzhou City, Guangdong Province, China.
The AR is an advanced engine that offers improved fuel efficiency despite its larger displacement, along with higher maximum output, cleaner emissions, and lower noise output. The engine comes in three displacements: A 2.5-liter, a 2.7-liter and a 2.5-liter hybrid, with the 2.5-liter type to be used in the new Camry soon to be launched in China.
The AR production will be added to the existing AZ engine (2.0-liter, 2.4-liter, 2.4-liter hybrid) production; total capacity will remain the same, at 500,000 units per year.
The start of AR engine production at GTE represents an additional investment of approximately US$96 million.
GTE was established in 2004 as a supply base for engines and engine parts in China. Production started in 2005, and cumulative production reached 1 million engines in 2009. In line with TMC’s principle of producing where products will be used or sold, the decision was made to produce AR engines in China to meet the anticipated strong demand for vehicles that comply with increasingly strict fuel efficiency and emissions regulations.
By mass producing future Camry Hybrid power trains in China, it will be possible to reduce cost and sell the hybrid version about the same price as the regular ICE version.
Posted by: HarveyD | 10 November 2011 at 07:37 AM