establishing a new line. This reorganisation demonstrates Toyota's commitment to plants that are competitive, rather than plants that simply aim to maximise production.
The new production line with an annual capacity of roughly 100,000 units is planned to begin production of a new vehicle model by mid-2018. Approximately 59-billion yen will be invested in the line to be located in the Tianjin Economic-Technological Development Area (TEDA) and operated by Tianjin FAW Toyota Motor Co., Ltd. (TFTM), a joint-venture established with China FAW Group Corporation (FAW).
The new line will take flexibility to a new level, allowing lengthening or shortening according to changes in vehicle model or volume. In addition, the implementation of the Toyota New Global Architecture (TNGA) will help boost TFTM's overall productivity.
Despite the addition of the new line, TFTM's overall production capacity is projected to remain at roughly current levels, since an aging TFTM line will stop vehicle production by the end of 2017.