Toyota confirms it will scale back Mexico plant

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A 2015 Toyota Camry (L) is seen at the press day for the Washington Auto Show in Washington January 22, 2015. (Reuters)

Toyota Motor Corp (TM) on Tuesday confirmed reports it will scale back a planned plant in Guanajuato, Mexico by 30 percent to $700 million and will cut planned production in half to 100,000 vehicles per year.

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The automaker in 2015 had announced plans to build a $1 billion plant in Mexico. Toyota spokesman Scott Vazin said the decision to shrink the plant does not “change our long-term commitment to Mexico, however; change is necessary in order to secure the long-term viability of our facility and our operations.”

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