Toyota May Take Hiatus from Building New Plants

Toyota Motor Corp. doesn't plan to begin construction of any new factories until at least April 2016, except those already announced, the The Nikkei reports without citing its sources.

Instead the company will focus its capital spending on expanding its existing plants and installing more efficient equipment there, according to the newspaper. It says Toyota will announce the construction hiatus in April as part of its global management plan.

The company's previously announced projects include new assembly and engine facilities in Indonesia set to open by 2014 and a Brazil engine factory scheduled to start production in mid-2015.

Toyota won't comment on the Nikkei report. But the company tells Bloomberg News that it aims to boost investment efficiency, which includes contracting out production of some Toyota models to such competitors as Mazda and Fuji Heavy's Subaru brand. The company also has said it intends to expand numerous existing facilities.