LONDON, Sept 24 (Reuters) - Toyota Motor Corp , the world's third-largest automaker, said on Tuesday it will consider strengthening European production to prepare for future expansion in Russian and central and eastern European markets.
The Japanese company has previously announced plans to lift production to 500,000 vehicles at its British, French and Turkish plants by early 2003 and to increase local production of diesel engines, transmissions and other parts to reduce costs.
"And to prepare for future expansion of the Russian, central and eastern European markets, as well as other markets, we will consider further strengthening of our production and marketing structures," Chairman Hiroshi Okuda told investors in London.
A key plank could be its Polish gearbox plant, which will also make engines for a new car plant in the Czech Republic that Toyota and France's PSA Peugeot Citroen have decided to build for production of a small entry-level car from 2005.
The joint venture plant in the Czech Republic will manufacture 300,000 vehicles from 2005, of which 200,000 will have the Peugeot brand and 100,000 will have the Toyota tag.
"The significance of the Czech plant for Toyota's European local production strategy goes well beyond these 100,000 units," said Okuda, referring to the Polish plant's ability to rapidly expand the scale of production of engines and transmissions.
On the marketing side, Toyota announced last year it had set up its first sales team in Russia in a bid to gain market share. The company, OOO Toyota Motor, began operations earlier this year and aims to sell about 20,000 vehicles annually.
Toyota had vehicle sales of 2,307 in Russia in 2000.