HispanicBusiness

Toyota Motor Corp. is considering not building any new plant worldwide over the three fiscal years starting in April, informed sources said Sunday.

The Japanese automaker will instead focus capital spending on improving productivity and cutting costs at existing plants as it seeks to overcome the continued tough business environment, the sources said.

Toyota is expected to include the new investment policy in a new business plan it is likely to release as early as this spring.

Toyota had been considering building a new plant in India for completion around 2016 to meet soaring vehicle demand in emerging economies.

But the automaker found it necessary to review its capital spending strategy after its inability to reduce fixed factory costs following the global financial crisis of 2008 drove the company into the red ink.

Toyota plans to step up investment aimed at introducing advanced assembly lines that can respond flexibly to a change in demand.

The company will allow new plants now under construction in Thailand and Indonesia to go into operation this year as scheduled.