Donald Trump threatens Toyota with tax on imports of Mexican-made vehicles

U.S. president-elect Donald Trump has taken aim at another automaker over its production in Mexico, this time threatening Toyota Motor Corp. with a tax on vehicles brought into the United States.

Toyota currently builds about 100,000 pickup trucks and truck beds annually in Baja California in northwestern Mexico, and plans to raise that output to about 160,000 by 2018.

Trump has the location of the new plant wrong. The company revealed in April 2015that it would spend$1 billion on an assembly plant in Guanajuato, which is incentral Mexico, and move production of its popular Corolla sedan there from another plant in Cambridge, Ont.

• Toyota moving Corolla production to Mexico from Ontario

When it comes online in 2019, the Guanajuato factory will have the capacity to crank out 200,000 cars a year, bringing an end to the production of the Corolla in Canada. It is one of the bestselling cars in Canadaand had been built here since the plant opened in the 1980s. The company said back in 2015 that the plant would "switch from producing Corollas to mid-sized, higher-value vehicles."

Toyota will also continue building Corollas in the U.S. at a plant in Blue Springs, Miss.

Employment in U.S. 'will not decrease'

"Production volume or employment in the U.S. will not decrease as a result of our new plant inGuanajuato, Mexico announced in April 2015," Toyota's U.S. division said in a statement on its website.

"With more than $21.9 billion direct investment in the U.S., 10 manufacturing facilities, 1,500 dealerships and 136,000 employees, Toyota looks forward to collaborating with the Trump Administration to serve in the best interests of consumers and the automotive industry," the company said.

On the New York Stock Exchange, Toyota Motor Corp. American depositary receipts closed down 69 cents at $120.44 US, with a sharp drop coming in the immediatewake of Trump's tweet.

Toyota's shares fell 1.7 per cent Friday in Tokyo.

• Economic development minister stresses U.S. Canada relationship amid Trump tax threats

Earlier Thursday, the heads of Toyota and Honda both said they had no immediate plans to curb their vehicle production in Mexico,preferringto wait until after Trump is inaugurated on Jan. 20 before making any decisions.

"We will consider our option as we see what policies the incoming president adopts," Toyota presidentAkioToyodasaid in Tokyo, according to Reuters.

Trump fired a shot at General Motorsearlier this week,threatening a tax on Mexican-made Chevy Cruze productionthat gets imported into the United States.

• Scuttled Ford plant has Mexico fearing more under Trump

Shortly after Trump tweeted that threat at GM, Ford announced it was dropping plans for a new $1.6 billion US plant in Mexico,a move that was criticized by Trump during last year's presidential primary campaign.

Instead, Ford said it willinvest about $700 millionin a Michigan factory that will build high-techautonomous and electric vehicles.

• Ford cancels $1.6B Mexican plant, Trump takes aim at General Motors

At the same time, however, Ford said it will continue with plans to build its newFocus small car at an existing plant in Hermosillo, Mexico, in order to boost company profitability.