
Since the downturn and aftermath of 5 years ago Toyota has been reluctant to engage in significant CapEx, a plan they say will not change until 2016 at the earliest. However the rumors of Toyota scouting Mexican acreage could prove to be significant, or at least relevant to Scion and the iM
A Reuters piece showed up in mid September (the 15th, 2014) where Mexican manufacturing was explicitly put on ice.
Now its also entirely possible, that this Mexican facility could be the catalyst behind growing the Scion brand. Sold as the lower cost, entry level Toyotas to unsuspecting consumers a cheaper manufacturing base in Mexico could improve the margins on lower volume Scion models in the future.Toyota Motor Corp (7203.T) is reconsidering a move to open a new compact car assembly plant in Mexico after company President Akio Toyoda told planners searching for a site to pause and review its rationale, executives familiar with the matter said.
According to four Toyota and group executives, momentum had been building for a decision this summer on the expansion, with the aim of starting production of the mass market Corolla in Mexico in a few years. But Toyoda then asked the team to "re-review" the project by year’s end, the people said.
Now naturally the question is can Scion support its own exclusive manufacturing base? I doubt it, but I don't doubt that the fortunes (and I'm talking profit not philosophy) of Scion could drastically improve, underpinned by much lower manufacturing costs..."Given the high cost constraints in the United States and Canada, we have no choice but to use lower-cost locations in emerging countries to build cars," he said. "I have been pushing for this since 2002. We need to build a presence in Mexico, sales-wise and manufacturing-wise."