Market Chatter: Toyota Plans First Domestic Factory Since 2012 Amid Labor Crunch

MT Newswires Live04-06 10:01

Toyota Motor (TYO:7203) plans to build a new plant in Toyota in the 2030s, marking its first domestic factory since 2012, with foreign workers expected to play a central role, Nikkei reported Sunday.

Nearby Homi Danchi, where about 60% of residents are foreign nationals, already supplies labor to the automaker's supply chain, according to the report.

Industry estimates suggest foreign workers must rise to 27% of Japan's auto workforce by 2040, from about 9%, to sustain current output levels, the report said.

Toyota and its suppliers are increasingly integrating foreign labor, underscoring a broader shift as labor shortages deepen and domestic production faces economic risks, according to the report.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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