Toyota has announced it will end a three-year, self-imposed break from expansion by building a new $1bn (£672m) plant in Mexico.The world’s biggest carmaker said it will also add a new production line to an existing plant in southern China.
The company stopped investing in new facilities after a series of massive recalls.
The most recent recall was last October, when the Japanese giant called back 1.75 million cars for checks.
Toyota raised its annual profit outlook earlier this year as a weaker yen offset a fall in domestic sales.
The new Mexico operation will be built in the state Guanajuato and will employ some 2,000 workers, the firm said.
Car production at the new plant is expected to start in 2019 with a focus on new technology and Corolla vehicles.
The Japanese firm also said it would restructure its existing lines at its joint venture with Guangzhou Toyota Motor Co in China, with plans to build an addition facility by the end of 2017.
Toyota faced a huge recall last year over various issues such as faulty brakes and fuel component issues.
Since then, however, it has forecast a record operating profit of 2.7 trillion yen ($22.93bn; £15bn) for the fiscal year to March, up from 2.5tn yen.
The firm is expected to report its full year earnings in May.