Toyota To Begin Operations In Mexico In 2002.(Toyota Motor Sales of Mexico)(Brief Article)

Toyota Motor Sales of Mexico will begin sales, service and marketing operations for their automobiles in Mexico during the second quarter of 2002, El Economista newspaper reported. The opening date depends on the speed with which a distribution network is formed, Toyota Motor Sales of Mexico Director General Jose Luis Sanchez Andion said.

This announcement demonstrates the company's genuine interest and long-term commitment to the Mexican, market, he said. Toyota Motor Sales of Mexico was established in May 2001 to plan operations for Toyota vehicles in Mexico.

Toyota Motors will take advantage of the value of their exports of auto parts produced by their Mexican branches in order to import their cars free of duties, the newspaper reported. Mexican automobile industry laws prohibit the sale of vehicles if there is no vehicle production on Mexican soil, something that has been affected by the free trade agreements Mexico has signed.

The prime example of this is Peugeot, which has no Mexican production plant but imports vehicles duty free from Chile. This situation has led other auto companies to quantify their export figures from Mexico for both vehicles and parts, which allows them to import the same amount in vehicles without paying import duties.

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