Toyota Motor Corp. has decided to halt the construction of new plants until 2016 so it can give more focus on existing plants and capital investments.
Toyota has yet to make the official announcement, and the company was not the source of the information, Masami Doi, a spokesman for Toyota City, told Bloomberg by phone. Japan's Nikkei Business Daily initially reported the news, but did not reveal its sources.
According to AFP, the automaker hopes this move will "increase efficiency and cut-costs."
A new management plan will be officially released in the coming months, but right now, everyone within the corporation is remaining mum.
"I cannot discuss our business plans, but we consider it important to boost investment efficiency to secure medium-to-long-term growth," Keisuke Kirimito, a spokeman for Toyota told Bloomberg.
In late 2012, Toyota announced plans to build a new engine plant in Indonesia. Since plans for this factory and another in Thailand were already declared before the corporation's decision to halt new construction on more plants, the building of these plants were go on as planned.
Just days after Toyota announced plans to build a factory in Indonesia, the company announced it was recalling 2.77 million cars worldwide, which mainly covered certain Prius models. The recall was caused by steering wheel problems and a problem with electric powered powered pumps. 670,000 of the cars recalled were made in the US.
By the end of December, things seemed to be looking up for up for Toyota again. Once the world's #1 carmaker, In 2011, the firm fell to #3 behind America's GM, and Germany's Volkswagen.
Toyota was world's biggest carmaker from 2008-2010, BBC News reports.
In 2011, many issues such as Japan's tsunami and earthquake caused many issues for car sales, but on December 26, Toyota said it anticipated a 22% increase in sales for 2012.