TOKYO, Nov. 9 (Kyodo) — Toyota Motor Corp. said Wednesday it has begun manufacturing a new four-cylinder engine at a joint venture company in Guangzhou, China, with the aim of meeting anticipated strong demand in China and increasing the autonomy of its operations there by localizing production.
The new in-line "AR" engine added to the lineup at GAC Toyota Engine Co. in October represents new investment of about $96 million, or approximately 7.45 billion yen. The advanced engine features "substantially improved" fuel efficiency, higher maximum output, cleaner emissions and lower noise output, according to a Toyota statement.
The plan will produce the 2500 cc, 2700 cc, and 2500 cc hybrid AR engines, with the 2500 cc type to be installed in the all-new 2012 Camry soon to be launched in China, Toyota said.
GAC Toyota Engine, which also produces the older "AZ" model as well as engine parts, has a total annual production capacity of about 500,000 units. A joint venture between Toyota and Guangzhou Automobile Group Co., it was established in 2004 as a supply base for Toyota engines and engine parts in China.
Toyota plans to start manufacturing in China vehicles with hybrid units made in China around 2015.