Despite the announcement that it is set to reduce production output until June 3, UMW Toyota Motor is looking at production expansion and improving its facilities over the next three years – the company is set to invest RM1 billion for this purpose.

The cutback in production is due to the supply of electronic components being disrupted by the effects of the earthquake and tsunami that hit Japan on March 11. The company said it will reduce assembly operation days to three in a week and run only afternoon shifts until June 3. It is however continuing to maintain its sales target of 90,000 units for 2011.

Nonetheless, despite production being affected in the short term, preparations are ongoing for the local launch of the next generation Camry sedan, which will be assembled at the company’s Assembly Services Sdn Bhd (ASSB) plant in Shah Alam when it is introduced. The plant celebrated its one millionth vehicle production mark yesterday, with the millionth unit being rolled out a Vios TRD Sportivo model.

Of the RM1 billion being pumped in, RM350 million is being allocated to upgrade the ASSB plant, and a new centralised stockyard is being built in Bukit Raja, Klang. The facility, which is due to begin operations at the end of the year, will also include a test track.