Section 5. Latin America, Africa, and Middle East
Item 2. Production Site Expansion
Complete-knockdown production - Venezuela, Peru, and Columbia
To respond to the Family Vehicle Program announced by the Venezuelan government in 1999, Toyota de Venezuela Compania Anonima (TDV) joined hands with Daihatsu Motor Co., Ltd. to begin complete-knockdown production (kit assembly) of the Terios in 2001. Then in 2004, the Venezuela Mobile program was announced to replace the expiring Family Vehicle Program, and the Terios was approved by the new system. As part of the IMV project, TDV also began assembling the Hilux and exporting it to countries belonging to the CAN, such as Columbia and Ecuador, in 2005.
In 2007, the Venezuelan government raised the tariff on passenger cars imported from outside the CAN region to 40 percent, while also promoting an easing of the trade barrier within the region, and introduced an import quota system for complete cars in 2008. In response to this series of measures, TDV decided to develop its business with a focus on complete-knockdown production.
In Peru, Toyota had been conducting complete-knockdown production since 1966, but ended it when the production of the Stout pickup was terminated in 1998.
In Columbia, TMC had been carrying out complete-knockdown production of the Land Cruiser and Hilux at Sociedad de Fabricacion de Automotores S.A. (a joint venture with Renault S.A.) since 1990. However, production of the Hilux there ended in 2004 before the IMV project started up in Argentina and Venezuela the following year. As a result, the joint venture with Renault was dissolved in 2008.