Amid record earnings, Toyota is reinvesting in product development, plants and equipment in an effort to hold on to its dominant position, and possibly overtake GM as the world’s number one automaker. Toyota said on Thursday that its capital spending would reach about $14 billion — about $2 billion more than the industry was expecting. Toyota President Katsuaki Watanabe described the increase in capital spending as a response to “unexpectedly strong demand” for the company’s cars. He noted that one of the toughest management challenges facing the company was to maintain its quality as it increases production.
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