Carmaker Toyota to invest $328 mln in Mexico hybrid pickup plant

MEXICO CITY, June 8 (Reuters) - Japanese carmaker Toyota (7203.T) will invest a further $328 million in a plant in the central Mexican state of Guanajuato, it said on Thursday, as it looks to adapt its production processes for a new hybrid model of its Tacoma pickup truck.

“The new version of the ‘Mexican pickup’ will be hybrid electric, which means Guanajuato will now form part of the company’s electrification production strategy,” Toyota said in a statement.

The funds are set to help adapt manufacturing for the new Tacoma model for a North American market, it added.

Toyota has invested close to $1.2 billion in Guanajuato since it announced the plant, it added, saying the factory currently provides more than 2,500 jobs.

The announcement followed a visit from Guanajuato governor Diego Sinhue to Japan.

Carmakers worldwide are shifting production away from combustion engines to more electric-powered vehicles as they seek to comply with the advent of more stringent emissions rules intended to curb the worsening impacts of climate change.

While Mexico, a key car manufacturing hub, produces large numbers of electric vehicles, many are exported to countries such as the United States while they remain

too costly

and impractical for drivers in much of the country, which lacks a thorough network of charging stations.

In March, Tesla said it would open a “

gigafactory

” in the northern state of Nuevo Leon, as the electric vehicle behemoth looks to expand its global output.