Posted on: Saturday, September 7, 2002

Toyota may rev up amid brisk sales

By Alan Ohnsman
Bloomberg News Service

NEW YORK — Toyota Motor Corp., the world's third-largest automaker, said it's considering adding production capacity in North America, including a fifth auto plant, to keep pace with rising sales.

The company expects its North American sales to reach 2 million cars and light trucks as early as next year and must consider how to keep up with growing demand, Toyota president Fujio Cho told reporters after a meeting with analysts and investors in New York.

The Japanese automaker hasn't decided on where and when a new factory might be built, he said.

"Our salespeople are very aggressive and want production expanded further," Cho said. "The U.S. has a growing population, so we're considering many options, including expanding production further."

The maker of Camry sedans is having its best year in the United States, its most profitable market. It's raised sales in 2002 through August by 4.1 percent over the same period last year, to 1.22 million Toyota and Lexus vehicles.

By the end of 2003, Toyota's four North American plants will be able to build 1.45 million vehicles a year.

Cho also said Toyota, the first automaker to sell gasoline-electric hybrid cars, is willing to license the fuel-saving technology to General Motors Corp. and other U.S. rivals. The company this week revealed plans to supply components for 100,000 vehicles to domestic competitor Nissan Motor Co.

"We're willing to supply them but so far no (U.S.-based automaker) has asked," Cho said. "U.S. makers indicated they want to use hybrids on bigger vehicles, like sport-utility vehicles, so if we develop that kind of system there'd be more interest."