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OHIRA, Japan – Going against industry trends to shift production outside Japan, Central Motor, a Toyota subsidiary, officially opened a new car plant last month in this community of 5,000 in northeastern Japan.
Central, one of Japan’s smallest car makers, is betting introduction of a host of cost-saving processes and technologies will enable it to overcome the impact of the strong yen that has hit Toyota harder than other domestic OEMs.
The new plant, when fully up and running, will have capacity to build 120,000 compact cars. It is starting with Yaris production for North America and the Middle East, but in April will add output of the Corolla for Japan.
Central currently is finalizing preparations to shift Corolla production from its 50-year-old Sagamihara plant west of Tokyo, which subsequently will be shuttered.
The Ohira plant, located 20 miles (32 km) north of Sendai, the region’s largest city, is built on a 108-acre (43-ha) site against the backdrop of the picturesque Ou Mountain range in Miyagi prefecture.
It has 22 acres (9 ha) under roof, including stamping, painting, welding, plastic molding and general assembly shops. Most components come from Aichi, Toyota’s home base.
Inside the plant’s walls, Central constructed a temporary floor above the main floor in the general assembly shop, where it installed the operation’s skillet-type conveyor system that eliminates the need for overhead carriers and the heavy steel structure needed to hang them.
