Toyota will not build new plants for at least two more years
Toyota planned to heed the lessons it learned during the global financial crisis that began in 2007, when it struggled for several years with overcapacity before demand recovered.
That's why the Japanese carmaker decides that it would refrain from building any new plants for at least two more years.
Instead, as anticipated by the Executive Vice President Nobuyori Kodaira, Toyota is asking its employees to come up with creative solutions to lifting output at existing facilities.
First auto company to make more than 10 million cars in a single year, Toyota this month predicted that total vehicle sales in the fiscal year ending next March would rise by a further 117,000 units from the total of 10.13 million in the year that just ended.
Some skepticism about this forecast was expressed by analysts, also after the announcement this month that business partner Fuji Heavy Industries would stop producing the Toyota Camry at a plant in Lafayette, Indiana in 2016.
Fuji has been making 100,000 Camrys annually at the plant, but the company plans to increase output under its own car brand, Subaru.
By 2016, Toyota said Camry production from that plant would be absorbed by a factory in Georgetown, Kentucky. But that plant has already been producing at maximum capacity. The major concern of Toyota is instead about the volatility of emerging markets, in particular Thailand.